KBRA Releases Research – Multilateral Finance Remains Meaningful to Sovereign Debtors

KBRA Releases Research – Multilateral Finance Remains Meaningful to Sovereign Debtors

KBRA releases research examining the evolution of creditor composition in emerging market sovereign debt.

Multilateral finance has remained a key source of funding across all emerging market (EM) regions despite major shifts in sovereign creditor profiles over the past three decades. KBRA analyzes trends in creditor finance to EM sovereigns from 1990-2024 using World Bank long-term external public debt data across four regions—Africa, Asia, Europe, and Latin America—based on a sample of countries.

Key Takeaways

The share of multilateral debt has remained broadly stable over time, largely due to multilateral development banks’ (MDB) countercyclical role.