The 2019 Annual Meetings of the African Development Bank Group will be held from 11-14 June 2019, in Malabo, Republic of Equatorial Guinea. Find out more
When the Bank lends to public sector borrowers, it generally requires a full sovereign guarantee or the equivalent from the borrowing member state. The credit risk ratings of the bank’s borrowing member states are reviewed quarterly by an independent team of country risk analysts within the credit risk management division. The sovereign credit risk process leverages on the hands-on, in-depth expertise of the Bank's large resource base of field economists.
When the Bank lends to private sector borrowers or enclave projects, it does not benefit from full sovereign guarantees or its equivalent. Consequently, the expected loss rate on its non-sovereign portfolio changes as a result of project rating changes and the evolution of the outstanding portfolio during the year. The credit risk ratings of projects are reviewed on a quarterly basis by a team of private sector specialists within the credit risk management department.