[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-111202-en":3,"doc-seo-111202-105":29,"detail-sidebar-cat-0-en-105":91},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":13,"seo_description":14,"update_tm":27,"read_time":28},111202,8796095360427,"Lucas Martin","https://ap-avatar.wpscdn.com/davatar_994ba38a5ba835b3df7d355c54d3ed8d",8,"Research & Report","IBRD Portfolio - Default Rates and Loss Given Defaults - March 2024","Developing countries require substantial financing to meet the Sustainable Development Goals, driving demand for capital mobilization and interest in multilateral development banks’ historical credit loss experience. This note compiles IBRD’s full borrower default history from its first default in FY1985, reporting default rates and loss given default statistics across the entire default record. It analyzes non-accrual history by region and over time, and explains IBRD’s six-month default definition under its preferred creditor status. The data support stakeholders including credit rating agencies and are shared with the GEMs consortium for pooled risk statistics.","Public Disclosure Authorized Public Disclosure Authorized  \nIBRD Portfolio  \nDefault Rates and Loss Given Defaults  \nMarch 2024  \nVice President: Lakshmi Shyam-Sunder, Vice President and WBG Chief Risk Officer  \nDirector: Yan Michelle Zhang, Director (CROCR)  \nTeam Members: Marc Carre, Amit Mehra, Jane Bogoev, Sergio Salinas, Max-Edouard  \nMondesir (CROCR); David Tan, Sridharan Srinivasan, Peter Chege Njorge, Nancy Fleming, Shriram Sukumar (WFALA)  \nIBRD Portfolio  \nDefault Rates and Loss Given Defaults  \n2024  \nSummary  \nDeveloping countries face tremendous financing needs to meet the Sustainable Development Goals and address critical global development challenges. The World Bank is exploring a range of options to stretch its own capital and to expand private capital mobilization as part of its Evolution exercise. In this context, stakeholders have expressed interest in the Multilateral Development Banks (MDBs)’ historical credit loss experience.  \nAs the MDB with the largest and longest sovereign lending data, IBRD undertook an exercise to gather data  \nof its entire borrower default history, starting from its first default in FY1985 . This report presents the key loss rate statistics (default rates and losses given default) covering the entire history of borrower defaults at the IBRD. The publication of these statistics will provide useful information for the broader stakeholder group such as credit rating agencies. IBRD will also share the data with the Global Emerging Markets Risk Database Consortium (GEMs) for the pooled MDB statistics.  \nIBRD’s Non-Accrual History Since Inception  \nChart 1: Number of Sovereigns in Non-accrual  \n(at end FY)  \nChart 3: Number of New Non-accruals  \n(by year of entry)*  \nFY47  \nFY51  \nFY55  \nFY59  \nFY63  \nFY67  \nFY71  \nFY75  \nFY79  \nFY83  \nFY87  \nFY91  \nFY95  \nFY99  \nFY03  \nFY07  \nFY11  \nFY15  \nFY19  \nFY23  \n9  \n1  \n8  \n4  \nFY81-FY85  \nFY86-FY90  \nFY91-FY95  \nFY96-FY00  \nFY01-FY05  \nFY06-FY10  \nFY 11-FY15  \nFY 16-FY20  \nBeyond FY20  \n» IBRD experienced 27 non-accrual events since it started lending in 1947, with the first default occurring in FY85 .  \n» Total IBRD non-accruals (at FY ends) peaked at 9 at end FY89 and end FY01 . The number of countries in  \nChart 2: Percentage Share of Non-accrual events, by region  \nECA MNA EAP  \n15%  \nAFR  \n50%  \nChart 4: Exposure in Non-Accrual as a % of Portfolio  \nnon-accrual has stayed at a historical low of 1-2 range in the last 15 years.  \n» IBRD’s non-accrual events are spread across four regions with half of the defaults in the Africa region  \n*Two non-accrual events of the same borrower with a small gap of a few months (i.e. the borrower entered non-accrual, then cleared the arrears before entering non-accrual again in a few months’ time) are treated as a single default. The chart therefore shows a total of 26 non-accrual events.  \n(AFR) and no default in the South Asia (SAR) and East Asia and Pacific (EAP) Regions.  \n» The number of new non-accruals was highest during the FY86-95 period with 8 new non-accruals in FY86-  \nFY90 and a peak of 9 in FY91-FY95 .There have been 2 new non-accrual events in the last 18 years since FY05 .  \n» IBRD’s largest share of non-accrual loans as a % of total portfolio outstanding peaked in FY89 at 4.1%.  \nHistorical Observed Annual Default Rates of IBRD Portfolio Since Inception  \n5.0%  \n4.0%  \n3.0%  \n2.0%  \n1.0%  \n0.0%  \nChart 5: Historical Annual and Average Default Rate (1981-2023)  \nHistorical highest = 4.5%  \nFY81  \nFY82  \nFY83  \nFY84  \nFY85  \nFY86  \nFY87  \nFY88  \nFY89  \nFY90  \nFY91  \nFY92  \nFY93  \nFY94  \nFY95  \nFY96  \nFY97  \nFY98  \nFY99  \nFY00  \nFY01  \nFY02  \nFY03  \nFY04  \nFY05  \nFY06  \nFY07  \nFY08  \nFY09  \nFY10  \nFY11  \nFY12  \nFY13  \nFY14  \nFY15  \nFY16  \nFY17  \nFY18  \nFY19  \nFY20  \nFY21  \nFY22  \nFY23  \nAverage annual default rate of 0.7% since 1981 with highest annual rate of 4.5% and a low of 0%.  \nThese reflect IBRD’s Preferred Creditor Status.  \nNote: Default Rate is the ratio of new defaults as a share o","cbCainP0lvM2zK75","https://ap.wps.com/l/cbCainP0lvM2zK75","pdf",1521573,1,25,"English","en",105,"# Summary\n## Non-Accrual History Since Inception\n## Historical Observed Annual Default Rates of IBRD Portfolio Since Inception\n## Historical Observed Loss Given Default (LGD) Rates of IBRD Portfolio Since Inception\n# Introduction","[{\"question\":\"What scope of data does the note cover for IBRD borrower defaults?\",\"answer\":\"It compiles data across IBRD’s entire borrower default history from its first default in FY1985 through the full observed record, reporting key loss rate statistics.\"},{\"question\":\"How does IBRD define a default for the default rate calculation?\",\"answer\":\"Default rate is based on new defaults as a share of active counterparts at the start of the period, using a six-month definition: debt service overdues persisting for more than six months lead to a default (non-accrual) event.\"},{\"question\":\"What does the note explain about loss given default (LGD) for IBRD?\",\"answer\":\"It reports observed LGD rates, describing LGD as economic loss from delayed receipt of contractual principal and interest, and notes IBRD’s lack of writeoffs in non-accrual events while still experiencing economic loss due to non-charged overdue interest.\"}]",1784489075,63,{"code":4,"msg":30,"data":31},"ok",{"site_id":24,"language":23,"slug":32,"title":13,"keywords":33,"description":14,"schema_data":34,"social_meta":86,"head_meta":88,"extra_data":90,"updated_unix":27},"ibrd-portfolio-default-rates-and-loss-given-defaults-march-2024","",{"@graph":35,"@context":85},[36,53,68],{"@type":37,"itemListElement":38},"BreadcrumbList",[39,43,47,50],{"item":40,"name":41,"@type":42,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":44,"name":45,"@type":42,"position":46},"https://docshare.wps.com/document/","Document",2,{"item":48,"name":12,"@type":42,"position":49},"https://docshare.wps.com/document/research-report/",3,{"item":51,"name":13,"@type":42,"position":52},"https://docshare.wps.com/document/ibrd-portfolio-default-rates-and-loss-given-defaults-march-2024/111202/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":62,"encodingFormat":60,"isAccessibleForFree":63,"interactionStatistic":64},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-22","2026-07-19",true,{"@type":65,"interactionType":66,"userInteractionCount":20},"InteractionCounter",{"@type":67},"ViewAction",{"@type":69,"mainEntity":70},"FAQPage",[71,77,81],{"name":72,"@type":73,"acceptedAnswer":74},"What scope of data does the note cover for IBRD borrower defaults?","Question",{"text":75,"@type":76},"It compiles data across IBRD’s entire borrower default history from its first default in FY1985 through the full observed record, reporting key loss rate statistics.","Answer",{"name":78,"@type":73,"acceptedAnswer":79},"How does IBRD define a default for the default rate calculation?",{"text":80,"@type":76},"Default rate is based on new defaults as a share of active counterparts at the start of the period, using a six-month definition: debt service overdues persisting for more than six months lead to a default (non-accrual) event.",{"name":82,"@type":73,"acceptedAnswer":83},"What does the note explain about loss given default (LGD) for IBRD?",{"text":84,"@type":76},"It reports observed LGD rates, describing LGD as economic loss from delayed receipt of contractual principal and interest, and notes IBRD’s lack of writeoffs in non-accrual events while still experiencing economic loss due to non-charged overdue interest.","https://schema.org",{"og:url":51,"og:type":87,"og:title":13,"og:site_name":58,"og:description":14},"article",{"robots":89,"canonical":51},"index,follow",{"doc_id":7,"site_id":24},{"code":4,"msg":5,"data":92},[93,97,101,105,110,115,120,123,128,131,135],{"id":20,"doc_module":4,"doc_module_name":45,"category_name":94,"show_sort_weight":95,"slug":96},"Story & Novel",90,"story-novel",{"id":46,"doc_module":4,"doc_module_name":45,"category_name":98,"show_sort_weight":99,"slug":100},"Literature",80,"literature",{"id":52,"doc_module":4,"doc_module_name":45,"category_name":102,"show_sort_weight":103,"slug":104},"Exam",70,"exam",{"id":106,"doc_module":4,"doc_module_name":45,"category_name":107,"show_sort_weight":108,"slug":109},5,"Comic",60,"comic",{"id":111,"doc_module":4,"doc_module_name":45,"category_name":112,"show_sort_weight":113,"slug":114},6,"Technology",50,"technology",{"id":116,"doc_module":4,"doc_module_name":45,"category_name":117,"show_sort_weight":118,"slug":119},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":45,"category_name":12,"show_sort_weight":121,"slug":122},30,"research-report",{"id":124,"doc_module":4,"doc_module_name":45,"category_name":125,"show_sort_weight":126,"slug":127},9,"Religion & Spirituality",20,"religion-spirituality",{"id":126,"doc_module":4,"doc_module_name":45,"category_name":129,"show_sort_weight":126,"slug":130},"World Cup","world-cup",{"id":132,"doc_module":4,"doc_module_name":45,"category_name":133,"show_sort_weight":132,"slug":134},10,"Lifestyle","lifestyle",{"id":136,"doc_module":4,"doc_module_name":45,"category_name":137,"show_sort_weight":106,"slug":138},19,"General","general"]