Description
The Global Emerging Markets Risk Database or 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 report provides insights into the dataset composition for public lending. It offers statistics with a much wider scope than previous editions, delving into the details of the dataset and showcasing the default and recovery rates along various dimensions:
- Default and recovery rates analysis: public counterparts have an overall default rate of 2.61%, while recovery rates for public contracts average 85.8%.
- Trends and distributions: default rates peaked in the late 1990s, reaching 8.6% in 1999. The report notes spikes in default rates during the COVID-19 pandemic.
- Recovery rate distributions show that over 70% of the defaulted contracts have recovery rates greater than 90%.
- Time to resolution: 49.0% of the defaults are resolved within five years.
