A new report by the Global Emerging Markets (GEMs) Risk Database Consortium reveals that multilateral development banks (MDBs) and development finance institutions (DFIs) lending to private entities in emerging and developing economies (EMDEs) has performed as strongly as in advanced markets , defying perceptions of elevated risk.

According to the GEMs Consortium’s latest statistics, average default rates in EMDE private lending stood at 3.54% , while recovery rates reached an impressive 72.9% , surpassing global benchmarks. The findings, derived from an extensive dataset of credit exposures across dozens of MDBs and DFIs, provide a clearer, data-driven picture of the true investment risk landscape in developing economies.

Lending Resilience Amid Global Volatility

The GEMs

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