A Guide to Troubled Loan Trading Issues Across Europe and China – Available Now
Covid-19 has caused massive economic and societal disruption as well as an unprecedented public health crisis. It has also affected default rates and increased regulatory pressure on banks to get rid of non-core assets and estimated trillions of non-performing loans on their balance sheets. Consequently, market commentators continue to anticipate higher levels of loan selling activity.
In previous years, purchasing NPL portfolios has already proven to be an attractive investment strategy for many investors but for returns, a clear understanding of the underlying assets as well as a clear appreciation of the landscape of countries where the presence of debtors is essential, for example in terms of regulation, structuring options, enforcement rights and speed Redemption and any anti-usury laws and taxes, to name a few.
In this rapidly evolving environment, many jurisdictions have responded by implementing temporary exceptional legal measures, such as a national enforcement moratorium, temporary changes to insolvency regulations and restrictions on pursuing debt claims, which are still being extended or modified to adapt to the needs of those who depend on them To charter a way out of the crisis caused by Covid-19. We are also awaiting the outcome of the work of the European Central Bank and the Economic Commission for Africa on the production of standardized standards and documents in this area.
In our updated and expanded guide to NPL trading issues across Europe and China, we’ve selected some of the key legal and practical issues you should be aware of when conducting NPL trading in jurisdictions that are strongly expected to be key areas of activity. Please contact any of our listed team members if you require further legal advice and insight, would like to discuss emerging or prevailing trends, or take a look at our track record.
Request a copy
Visit the resource center