On 21 October 2022, there was published in the Official Journal of the European Union a communication from the European Commission on guidelines for a best-execution process for sales of non-performing loans (NPLs) on secondary markets.

The communication sets forth that the objective of these guidelines is to encourage good sell and buy-side processes for NPL transactions in EU secondary markets and, in particular, to help sellers and buyers that may have less experience with secondary market transactions.

The guidelines outline some practices and conditions considered necessary to achieve a successful outcome. While market participants are not obliged to follow the guidelines, they provide NPL sellers and buyers with a clear and structures process that should enable them to achieve a successful outcome.