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Window of opportunity for non-performing loans

The bill on servicers includes important amendments

The bill on servicers includes important amendments, which facilitate the out-of-court settlement, but also enshrine the role of servicers, so that the process “runs” on time.

For example, they advocate certain practices in their simplest version concerning bilateral discussions.

Payment in advance

In the cases of debtors who have been notified of an auction program and do not belong to the category of vulnerable debtors, the counter-proposal of the financial institutions may contain a 10% advance payment on the capital in order to stop the auction and the debtor can then make use of the debt settlement calculation tool  on an out-of-court basis.


As stated in Article 2 “Extraordinary legalization of credit managers”, in case of entrusting the management of claims from loan and credit contracts to credit managers, they are legalized as non-beneficiary parties to exercise any legal aid and to take any other legal action for the collection of receivables under management, as well as to initiate, attend or participate in pre-bankruptcy consolidation, insolvency and debt settlement procedures.


The above mentioned amendments strengthen the banks’ ability to proceed with counter-proposals. For instance, they can make a restructuring proposal to the debtor, co-evaluate the ability to contribute to the repayment to the financial institutions, as well as the liquidation value of their assets.