NPLs in Spain: A new market landscape

The Spanish non-performing loan (NPL) market is about to undergo a profound transformation. Although significant steps have been taken in recent years towards financial stability and transparency, Spain continues to lead the European ranking in terms of NPL volume. In this context, the imminent approval of a new law regulating the sale and management of these loans marks a turning point for financial institutions, investors and specialised managers.

This report provides a clear and practical analysis of the main challenges facing the sector and the legal implications of the future Law on Administrators and Purchasers of Non-Performing Loans, which transposes Directive (EU) 2021/2167. Among its most relevant new features are:

• New obligations for purchasers, sellers and servicers of loans.
• Authorisation and supervision requirements by the Bank of Spain.
• Changes in the registration of secured credit transfers.
• Impact on insolvency proceedings and restructuring plans.

If your activity is related to the acquisition, management or sale of NPL portfolios, this document will help you anticipate changes, adapt your processes and understand how this new regulation may affect your operations and strategies.