FUNDING VITAL EMERGING AND DEVELOPING MARKET PROJECTS:
HOW GEMS AND PRIVATE MARKETS CAN HELP ACHIEVE SCALE
Global challenges are best addressed globally. Many market participants estimate that Emerging Markets (EMs) require trillions of dollars in order to invest in infrastructure and transform their economies. This cannot be financed by Multilateral Development Banks (MDBs) and Development Financial Institutions (DFIs) alone. Private institutional capital is required to achieve the scale necessary to overcome global and local challenges.
Private Institutional Capital is constrained by factors such as the lack of reliable and consistent data, MDBs, with their rich experience in EMs, are in the position to alleviate certain data issues.
Granular historical default and recovery data across the countries and sectors, experienced and recorded by MDBs, is a key component for ARC Ratings and other market participants to produce robust assumption for risk assessment, preventing a more conservative approach in the absence of data. With high-quality and reliable data, ARC could supply the analysis, tools, and ratings to better assess the risk of complex transactions in various legal jurisdictions and assist in the analysis required for market participants to invest efficiently and at sufficient scale.
