IDB - Inter-American Development Bank
IDB - Inter-American Development Bank
08/30/2024 | Press release | Distributed by Public on 08/30/2024 07:50
IDB and IDB Invest Release Unprecedented, Disaggregated Loan Performance Data Showing Strong Results
- Data focuses on loan performance, default, and recovery rates, and preferred creditor treatment.
- Publication is in line with G20 recommendations of increased transparency of disaggregated data and credit performance, helping to unlock investment in the region.
The Inter-American Development Bank (IDB) and IDB Invest, the private-sector arm of the IDB, released two reports, IDB's Historical Default & Loss Rates and IDB Invest's Default and Recovery Rate Analysis, with decades of proprietary data on historical performance of their public and private sector operations to drive progress on development in Latin America and the Caribbean.
The new reports showcase the strong historical performance of the IDB's sovereign and non-sovereign operations since 1959 and 1996 for the IDB and IDB Invest, respectively. The reports also provide greater transparency by including disaggregated data on the IDB's operations, in line with the G20's call for more disaggregated disclosures from multilateral development banks (MDBs).
"The IDB and IDB Invest have been trusted partners in financing and driving inclusive and sustainable development across Latin America and the Caribbean," said IDB President Ilan Goldfajn. "These reports reflect our commitment to transparency, demonstrate the historically strong performance of our operations, and build investor confidence in our region."
The IDB and IDB Invest have been contributing data regularly to the Global Emerging Markets Risk Database Consortium (GEMs), which pools worldwide data from 25 multilateral development banks and development finance institutions to provide insights into performance and perceived risks of investing in emerging markets.
IDB Report Highlights:
• Strong Loan Portfolio: From 1959 to 2023, the IDB maintained a nearly fully performing sovereign-guaranteed loan portfolio, with an average default rate of just 0.5%.
• High Recovery Rates: The IDB has collected all principal and interest due in all resolved events, resulting in a low historical average loss rate of 2.02%.
• Preferred Creditor Treatment: Robust performance and low loss rates underscore the preferred creditor treatment granted by the Bank's borrowing member countries.
IDB Invest Report Highlights:
• Low Default Rates: From 1996 to 2023, IDB Invest reported a low average default rate of 1.8%, underscoring the solid loan performance of its private-sector clients and demonstrating its risk management expertise.
• High Recovery Rates & Financial Resilience: A 69% recovery rate showcases IDB Invest's effectiveness in managing assets and credit risk, which should boost investor confidence.
• Strong Sector Performance: The report highlights success across key industries, with financial intermediaries showing the lowest default rates and infrastructure projects achieving high recovery rates.