A new EU Regulation has come into force which establishes a European Account Preservation Order (EAPO) procedure. It is intended to facilitate cross-border debt recovery in civil and commercial matters (Regulation (EU) 655/2014). The main provisions will not however apply until January 2017.
Under the new procedure, a creditor will be able to obtain an EAPO which effectively freezes the debtor’s funds in an EU bank account up to a specified amount. It will apply only in cross-border cases, that is where the relevant bank account is held in a different Member State to where the EAPO application is made or the creditor is domiciled.
The Regulation does not apply to the UK and Denmark, which have opted out. This means the procedure will not be available for bank accounts held in those Member States or, it seems, to creditors domiciled in those Member States.
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Theodorou Law Firm is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law. The above should be used as a source of general information only. It is not intended to give a definitive statement of the law.