October 17, 2025
Lending by multilateral development banks (MDBs) and development finance institutions (DFIs) to private entities in emerging markets has performed comparably to that in advanced economies, with an average default rate of 3.54 percent and recovery rates exceeding global benchmarks at 72.9 percent, according to new statistics from the Global Emerging Markets Risk Database (GEMs) Consortium.
The findings provide valuable insights into investment risks and opportunities in emerging markets and developing economies (EMDEs) and emphasize the importance of greater data transparency to support private capital mobilization and portfolio diversification in these regions.
Despite facing significant financing challenges, including a potential cumulative shortfall of more than $10 trillion by 2050 as projected by the Organisation for Economic Cooperation and Development (OECD), GEMs data indicate that credit performance in EMDEs has been more resilient than commonly perceived. This resilience underscores the potential for scaling up investment in these markets.
“By providing more granular statistics, GEMs enable investors, credit rating agencies, and policy institutions to better understand and manage investment risks in regions that have historically lacked empirical credit risk information,” said Rachel Robboy, Chief Risk Officer at IDB Invest. “GEMs offers the statistical foundation that helps IDB Invest and peer institutions mobilize investment at scale in emerging markets.”
Source: (Caribbean News Global)
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.