This note summarizes the key IDB Sovereign-Guaranteed (SG) borrower defaults and loss rate statistics. The report shows how, since its incorporation, the performance of the Bank's SG loan portfolio has been outstanding, with no loss on principal, interest, or fees, only the financial losses resulting from foregone return on late interest payments during eight non-accrual events (with only five borrowing countries). The loss rates for resolved SG borrower non-accrual events do not include the ongoing episode with Venezuela. The publication supports G20 CAF Review expectations for greater transparency and disaggregated data disclosure from Multilateral Development Banks (MDBs). The supporting information used in this report has been contributed to the Global Emerging Markets Risk Database Consortium (GEMs), pooling data from 25 multilateral development banks (MDBs) and development finance institutions to help demystify perceived risks of investments in emerging markets and increase confidence among investors.
Authors
- DOI
- http://dx.doi.org/10.18235/0013134
- Pages
- 14
- Published in
- United States of America
Table of Contents
- Introduction Definitions 3
- Default Rates Analysis 3
- Loss Rates Analysis 3
- IDB Historical Observed Default Rates 3
- Summary 4
- Introduction Definitions 5
- Non-accrual. 5
- Default Rate. 5
- Loss Rate LR. 5
- Introduction Definitions 5
- Default Rates Analysis 6
- The analysis shows that the average observed annual default rate for the IDB outstanding loan portfolio over FY1959-2023 is 0.5 with a low of 0 and a high of 9.1. 7
- Loss Rates Analysis 8
- Methodology 8
- 0.0 9
- 1.0 9
- 2.0 9
- 3.0 9
- 4.0 9
- 5.0 9
- 6.0 9
- 7.0 9
- Panama Nicaragua Peru Honduras Suriname Suriname Suriname 9
- The analysis shows that the IDBs observed average LR across its full portfolio and over its entire history is 2.02 ranging from a low of 0.03 to a high of 5.93. 9
- Disclaimer 10
