site.btaEuropean Commission Refers Bulgaria to Court over Non-performing Loans

The European Commission Wednesday said it will refer Bulgaria to the Court of Justice of the European Union for failing to transpose the Directive on Non-Performing Loans (Directive(EU) 2021/2167). Also to be referred to the Court are Spain, Hungary, the Netherlands, Austria, Portugal, and Finland.

The Directive aims to foster the development of a well-functioning secondary market for non-performing loans by establishing rules for the authorisation and supervision of credit purchasers and servicers. The Directive provides a set of harmonised criteria allowing credit servicers to market non-performing loans cross-border. 

Bulgaria had until December 29, 2023 to transpose this Directive, but national implementing measures have still not been notified by the country, the European Commission's press release reads. The Commission sent a letter of formal notice to Bulgaria on January 24, 2024 and subsequently a reasoned opinion on July 25, 2024.

The Commission considers that efforts by the Bulgarian authorities have, to date, been insufficient and is therefore referring the case to the Court of Justice of the EU, with a request for financial penalty payments.