Description
The Global Emerging Markets Risk Database Consortium (GEMs) is a consortium of multilateral development banks and development finance institutions that aims to pool credit default risk data. Established in 2009, GEMs is a joint initiative between the European Investment Bank Group and the World Bank Group. The GEMs risk database is a unique example of a tangible common good that can help catalyse investment in emerging markets. This report, the second publication by the Global Emerging Markets Risk Database Consortium (GEMs), on sovereign and sovereign guaranteed lending, provides statistics derived from pooled GEMs data from 1998 to 2022. The report highlights the superior performance of MDBs in terms of default rates compared to other publications, thanks to their stringent arrears policies, solid shareholding structures, and Preferred Creditor Status (PCS). The report also showcases the unique features and potential of the GEMs risk database, explaining its methodological framework and various applications. GEMs statistics serve as a reliable base for discussing regulatory compliance, capital adequacy, and risk management practices. The report aims to offer valuable insights into the credit experiences of MDBs and sovereign and sovereign guaranteed lending, and welcomes feedback from readers to improve future publications.