Key takeaways of World Bank Group statistics:

Monday, 1 April 2024 04:06 -     - {{hitsCtrl.values.hits}}

  • The IFC’s private sector portfolio had a low default rate of 4.1% from 1986 to 2023, suggesting the untapped potential and resilience of private sector investments in emerging markets.
  • For investments rated as “weak” by IFC’s internal rating system, the default rate was only 2.6% during the period between 2017 and 2023, indicating that even investments considered higher risk can perform better than could be expected.
  • For sovereign borrowers, defaults are rare, averaging just 0.7% annually, and the World Bank typically recovers more than 90% of the amount owed, including both principal and interest. This underscores the World Bank’s preferred creditor status and its ability to effectively manage sovereign credit risk.
  • Sovereign default losses range from 0.01% to 58.5%, reflecting the effect of interest rates and length of time in default.