Description
The Global Emerging Markets Risk Database (GEMs) Consortium was established in 2009 as a joint initiative between the European Investment Bank and the International Finance Corporation to pool credit risk data. The GEMs database is designed to support technical cooperation between international institutions and catalyse investments in emerging markets. GEMs comprises 29 member multilateral development banks and development finance institutions with business activities in emerging markets and developing economies.
This edition of the report expands the dataset for sovereign and sovereign-guaranteed lending by another year, now covering 41 years (1984-2024). It includes average default and recovery rates as well as provides statistical metrics with confidence intervals and percentiles.
An upward trend in default rates is noted since 2022, with an overall average annual default rate of 0.77%.
Recovery rates show high levels, with most defaults achieving a recovery above 95%, and the median time to resolve defaults is slightly over three years.
