In its issue of 12.06.2025, the Börsen-Zeitung deals with the development of the German market for non-performing loans (NPL). Under the title “Foreign investors interested in bad loans” , the article looks at the increase in commercial NPLs in particular and the demand on the part of investors
According to the NPL Barometer published by the German Federal Association for Loan Purchase and Servicing (BKS), the NPL volume in Germany amounted to EUR 46.6 billion at the end of 2024 – an increase of 23% compared to the previous year. It forecasts a volume of 40 to 50 billion euros by the end of 2025.
Focus on commercial financing
“The trouble spot is commercial real estate financing,” explains Dr. Clifford Tjiok, Chief Commercial Officer and member of the Loancos Executive Board. In this segment, the NPL ratio rose from 4.8 to 5.9 percent between the end of 2023 and the end of 2024. “We are currently reviewing loans of several hundred million euros. In these cases, the banks have lost the fantasy that the cases will resolve themselves,” reports Thomas Spulak from Proceed Portfolio Services.
Timur Peters, Managing Director of the credit trading platform Debitos, does not see a pronounced sense of crisis among banks despite the increase. Nevertheless, the market is active and the number of transactions is increasing. What is particularly striking is that many foreign investors are currently showing greater interest in the German market than in Italy or Greece, for example.
Against this background, Loancos, PPS and Debitos concluded a cooperation agreement in May 2025 that paves the way for foreign investors to enter the German NPL market(read more). Contact us if you are interested in this topic!
