Circular on Draft Implementing Technical Standards on Information Requirements on Sales and Transfers of Non-Performing Loans

Circular Triq l-Imdina, Zone 1 Central Business District, Birkirkara CBD 1010 +356 2144 1155 communications@mfsa.mt www.mfsa.mt Circular on Draft Implementing Technical Standards on Information Requirements on Sales and Transfers of Non￾Performing Loans On 16 December 2022 the EBA has published draft Implementing Technical Standards (‘ITS’) specifying information requirements that credit institutions shall provide prospective buyers when selling or transferring non-performing loans. Pursuant to Article 16(1) of the Directive on credit servicers and credit purchasers (Directive (EU) 2021/2167), the EBA has developed draft ITS to specify the templates to be used by credit institutions for the provision of information to credit purchasers when selling or transferring non-performing loans. The ITS introduces common data standards across the EU leading to increased efficiency of the secondary markets and to reduced information asymmetries between sellers and buyers of non-performing loans. The templates cover requirements regarding loan counterparties, contractual loan characteristics, collateral and guarantees, and other information relevant for the sale or transfer of non-performing loans. The ITS also includes proportionality arrangements, setting different information requirements depending on the nature of the borrowers and of the loans to be sold or transferred. Credit institutions are recommended to take note of the obligations set out in the EBA draft ITS, which is expected to be adopted by the European Commission in due course. 13 January 2023