The Bank of Portugal has published two regulations on the prevention and out-of-court settlement of default situations, Notice 7/2021 and Instruction 16/2021.
The Notice sets out the duties that institutions must observe in the prevention and out-of-court settlement of breaches of credit agreements with private banking customers by (i) defining the information that institutions must disclose to the public on breaches of credit agreements and the RACE (Consumer Debtor Support Network) (ii) specifying the requirements that must be taken into account in the preparation and implementation of the PARI and PERSI and (iii) establishing the duty to report to Banco de Portugal the internal documents prepared by institutions describing the procedures implemented within the scope of the PARI and PERSI.
Instruction No 16/2021 establishes the requirements and communication model to be observed in the regular reporting to Bank of Portugal of information on credit agreements covered by PARI and PERSI.
The Notice shall enter into force on 1 January and the Instruction on 15 January 2022, and Notice No. 17/2012 and Instruction No. 44/2012 shall be repealed respectively.
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