## Appendix 1. Emerging Markets Corporate Debt Data

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---

### I. Introduction
- Global debt expanded by $57 trillion since 2007.
- By Q2 2014, global debt stood at 286 percent of global GDP, compared to 269 percent of GDP in 2007.
- Emerging markets accounted for half of the new debt since 2007; one quarter of that new debt came from nonfinancial corporations.
- Purpose: cross-country balance-sheet analysis and stress testing of emerging market corporate sectors to shocks from exchange rate depreciation, earnings decline, and increases in borrowing cost.

### II. Rising Corporate Debt
- Corporate bond issuance rose by 10 percent ($77 billion) in 2014, with Asia leading other regions.
- Foreign currency issuances amounted to one fifth of total issuance over the last five years and grew at a compounded annual rate of 15 percent.
- Projected corporate rollover needs (major emerging markets and overseas subsidiaries): around $90 billion in 2015, rising to $130 billion in 2017–18.
- Sectors accounting for three-quarters of new debt in 2014: manufacturing, utilities, and energy.
- Regional sector concentration in 2014:
  - Latam and EMEA: energy comprised the largest share of issuance.
  - Asia: manufacturing comprised the largest share of issuance.
- Total nonfinancial corporate debt to GDP:
  - The ratio rose in about one-half of the 17-country sample, was broadly unchanged in four countries, and declined in four countries.
  - As of 2014, the ratio of total nonfinancial corporate debt to GDP exceeded levels seen in vulnerable countries during the Asian financial crisis in six of the seventeen countries: Bulgaria, Chile, China, Malaysia, Thailand, and Turkey.
- Funding patterns:
  - China, Malaysia, Thailand: corporate debt funded primarily by domestic banks and domestic capital markets.
  - Chile, Turkey, Bulgaria: corporate debt funded primarily from international capital markets.
- Data/sample notes:
  - Corporate bond data sample comprises 17 countries: Argentina, Brazil, Bulgaria, Chile, China, Hungary, India, Indonesia, Malaysia, Mexico, Peru, the Philippines, Poland, Russia, South Africa, Thailand, and Turkey.
  - Corporate bond data are available only for a few emerging economies; sample determined by data availability and J.P. Morgan corporate debt indices.

### III. Rising Vulnerabilities
- Emerging market economic growth slowed from 7.4 percent in 2010 to 4.6 percent in 2014.
- Firm-level profitability declined in 2014 across most emerging market countries relative to their five-year averages.
- Key firm-level dynamics (2010–2014):
  - Debt has grown faster than earnings in most countries, raising net debt-to-EBIT ratios.
  - Interest expense grew faster than earnings in all regions.
- Debt-at-risk analysis (Orbis sample ~43,000 firms; Appendix 2 describes ICR and debt-at-risk computation):
  - Average debt at risk rose 22 percent in 2014 from levels in 2010.
  - Highest levels of debt at risk were in EMEA; the pace of increase was most rapid in Latin America.
  - Turkey and Peru excluded from this exercise due to data gaps and lack of a good representative sample of firms.
- Caveat: estimates of total debt may be a lower bound because some corporates borrow abroad via SPVs or affiliates and do not consolidate exposures.

### IV. Stress Testing the Corporate Sector
- Stress-test shocks applied to firm balance sheets:
  - A 30 percent increase in borrowing costs (similar to average median changes during the GFC).
  - A 20 percent decline in earnings (similar to average median changes in firms’ EBIT during the GFC).
  - A currency depreciation against the U.S. dollar of 30 percent (similar to trends observed in late 1990s).
- Hedging assumptions:
  - Natural hedges proxied by share of foreign sales to total sales (Worldscope’s median foreign sales to total sales ratios used as proxy).
  - Financial hedges: assume 50 percent of foreign currency debt interest expenses are hedged through derivatives.
- Stress-test results and key magnitudes:
  - Joint occurrence of the three shocks weakens median ICRs; in most cases median ICRs remain above 1.5.
  - Largest ICR impact in countries with higher foreign-currency borrowing and lower natural hedges.
  - Debt at risk could exceed 50 percent of total corporate debt in: Brazil, Bulgaria, Hungary, and Indonesia (post-shock).
  - For the sample as a whole, debt at risk could increase from 30 percent of total debt to 45 percent of total debt under the joint shocks.
  - Firm-size distribution:
    - Large firms would account for the bulk of new debt at risk in Asia and Latam.
    - In EMEA, one third of the new debt at risk would come from small-and-medium sized firms.
  - Commodities-related firms:
    - Post-shock debt at risk from the commodities sector could increase sharply in Hungary, the Philippines, Indonesia, and Thailand (though they remain at low levels in these countries).
    - In Brazil, commodities-related companies’ debt at risk is around one third of total debt (2014, after shocks).
  - State-owned enterprises (SOEs):
    - SOE debt at risk could exceed 3 percent of GDP in Brazil, China, Hungary, and Malaysia if shocks materialize.
- Sensitivity to hedging:
  - Results shown for scenarios “Without Hedge”, “With Natural Hedge Only”, and “With Natural and Financial Hedge” indicating material mitigation from hedges, but residual vulnerability remains.

### V. Impact on Banks
- Corporate sector stress could raise nonperforming loans and erode banks’ asset quality.
- Bank buffers considered: Tier 1 capital plus loan loss reserves (Appendix 4).
- Under the stress scenario, assuming corporate debt at risk owed to banks default with a probability of 15 percent:
  - Buffers (Tier 1 capital and provisioning) would be stretched relative to Basel III minimum capital requirement in: Bulgaria, India, Hungary, and Russia.
- Caveats:
  - Bank buffers may be overstated in some countries due to lax recognition of doubtful assets and loan forbearance.
  - Higher-than-expected corporate defaults and loan losses in a downturn could erode perceived adequate equity capital levels.

### VI. Policy responses
- Strengthening the monitoring of corporate liabilities structure:
  - Mandate better disclosure of firms’ liabilities, especially those in foreign currency.
  - Improve the collection and analysis of financial data, including timely and more granular data on off- and on-balance sheet derivatives obligations and the extent of foreign currency hedging.
- Tightening microprudential policies:
  - Consider imposing limits on firms’ foreign currency borrowing where feasible.
  - Adopt more stringent bank lending and underwriting standards.
  - Countries whose banking sector has low loss absorbing buffers should consider measures to bolster banks’ resilience through the buildup of more equity capital and provisioning.
- Improving macroprudential policy tools:
  - Identify macroprudential tools to mitigate rollover risk, debt service burden, and balance sheet sensitivity to interest rate changes and exchange rate risk.
  - Refer to the IMF Staff Guidance Note on Macroprudential Policy—Detailed Guidance on Instruments for details on tools, benefits, costs, and the need for recalibration.

### VII. Summary and conclusions
- Emerging market corporate debt has risen sharply in recent years, supported by low interest rates and easy access to global capital markets.
- High levels of leverage could render firms vulnerable to shocks, especially in an environment of weak economic growth.
- Analysis based on 2014 corporate balance sheet information in a sample of emerging market countries:
  - Stress test exercise shows that a combination of shocks (exchange rates, weaker-than-expected economic growth, higher borrowing costs) could significantly erode firms’ interest coverage ratios.
  - Overall corporate sector risk remains moderate in most countries in the sample.
  - Adverse impact on debt-service ability is accentuated where corporates borrow more in foreign currency but have low natural hedges.
- Corporate sector stress will affect the banking sector through increases in nonperforming loans.
  - Banking systems where Tier 1 capital and provisioning are low would be most vulnerable.
- Policy implication:
  - Carefully monitor and contain the rapid growth of corporate leverage through a combination of macro- and microprudential policies.
  - Guard against the accumulation of unhedged foreign currency liabilities to preserve financial stability.

### Appendix 1 — Corporate debt data construction and gaps
- Corporate debt definition:
  - Aggregate comprises borrowing from banks and bonds issued in the domestic and overseas capital markets, denominated in local and foreign currencies.
- Data gaps:
  - Data on foreign currency liabilities, their currency breakdown and maturity structure remain sparse.
- Proxy construction for total corporate debt:
  - Total corporate debt is estimated as: External Debt + Loans from Domestic Banks + Borrowings from Domestic Capital Markets
  - These are adjusted using year-end exchange rates.
- Foreign currency-denominated debt approximation:
  - Approximated by external debt based on:
    - Preference of external corporate bond funds for foreign-currency-denominated bonds.
    - Weak debt covenants and rare international credit assessments for some local currency corporate bonds.
- Note on debt maturity and default classification:
  - Debt maturity data incomplete; Bloomberg provides corporate bond maturity but bank loan maturities are not readily available publicly.
  - A firm may be classified in default if any interim interest or coupon payment is missed even though principal is not due.

### Appendix 2 — Interest Coverage Ratio (ICR) and Debt at Risk
- Interest Coverage Ratio:
  - ICR = Earnings/Interest Expense, where Earnings is measured by earnings before interest and taxation (EBIT).
  - An ICR of less than 1 implies the firm is not generating sufficient revenues to pay interest on its debt without adjustments.
- Debt at Risk:
  - Analysts often use an ICR of 1.5 as an early warning threshold.
  - Definition used: debt at risk = debts of firms with ICR below 1.5.
  - The share of debt at risk indicates the proportion of outstanding debts vulnerable due to weak debt servicing capacity.
  - Historical note: During the Asian Financial Crisis, countries whose corporate sector median ICR was below 1.5 were more vulnerable.
- Practical implications:
  - An ICR lower than 1.5 flags potential vulnerability to funding risks, particularly when market liquidity is scarce.

### Appendix 4 — Nonperforming loans and banks’ loss absorbing buffers (methodology and parameters)
- Increase in corporate NPL (stress scenario) computed as:
  - Increase Corporate NPL = Increase in Corporate Loan at Risk x Probability of Default x Loss Given Default
- Components and parameter values used:
  - Increase in Corporate Loan at Risk:
    - Derived from scaling of the sample total debt and increase in debt at risk by the amount of total bank lending to the nonfinancial corporate sector.
  - Probability of Default:
    - Approximated as 15 percent based on Moody’s default probability for corporate debts with interest coverage ratio of 1.5 for a three-year horizon, from 1970-2012.
  - Loss Given Default (LGD):
    - Computed as an average of 45 percent (Basel II Foundation Approach for senior claims on corporates, sovereigns and banks not secured by recognized collateral) and country-specific LGDs from The World Bank’s data on “Resolving Insolvency”.
    - LGD formula: LGD = 1 - Recovery Rate
- Bank loss absorbing buffers:
  - Defined as Tier 1 capital and the excess of provisioning over the stock of NPL.
  - After-shock loss absorbing buffers computed as:
    - Tier 1 capital + Loan Loss Reserves – Existing Stock of NPL – Projected Increase in NPL
  - Risk-Weighted Assets are used in normalizing buffers.

### Key numerical thresholds and policy-relevant figures cited
- Basel III minimum Core Tier 1 capital: 4.5 percent
- Basel III minimum Core Tier 1 ratio with Capital Conservation: 7 percent
- Probability of default used in stress test: 15 percent
- Average Loss Given Default used: 45 percent
- ICR thresholds:
  - ICR < 1: firm not generating sufficient revenues to pay interest without adjustments
  - ICR < 1.5: early warning threshold for debt at risk

### Imputed Recovery Rates and Loss Given Default (LGD) by country (Appendix Table 2)
- Argentina: Recovery rate 28.67, Loss Given Default (LGD) 71.4
- Brazil: Recovery rate 25.87, Loss Given Default (LGD) 74.2
- Bulgaria: Recovery rate 33.2, Loss Given Default (LGD) 66.8
- Chile: Recovery rate 30, Loss Given Default (LGD) 70
- China: Recovery rate 36, Loss Given Default (LGD) 64
- Hungary: Recovery rate 40.2, Loss Given Default (LGD) 59.8
- India: Recovery rate 25.7, Loss Given Default (LGD) 74.3
- Indonesia: Recovery rate 31.7, Loss Given Default (LGD) 68.3
- Malaysia: Recovery rate 81.3, Loss Given Default (LGD) 18.7
- Mexico: Recovery rate 68.1, Loss Given Default (LGD) 31.9
- Philippines: Recovery rate 21.2, Loss Given Default (LGD) 78.8
- Poland: Recovery rate 57, Loss Given Default (LGD) 43
- Russian Federation: Recovery rate 43, Loss Given Default (LGD) 57
- South Africa: Recovery rate 35.7, Loss Given Default (LGD) 64.3
- Thailand: Recovery rate 42.3, Loss Given Default (LGD) 57.7

*Source: Appendix 1, _wp15216 - Appendix 1. Emerging Markets Corporate Debt Data*

### Appendix 1. Emerging Markets Corporate Debt Data.............................................................14

### Appendix 1. Emerging Markets Corporate Debt Data

### I. Introduction
- Global debt expanded by $57 trillion since 2007, outpacing global GDP.
- By Q2 2014, global debt stood at 286 percent of global GDP, compared to 269 percent of GDP in 2007.
- Emerging markets accounted for half of the new debt since 2007; one quarter of that new debt came from nonfinancial corporations.
- Purpose: cross-country balance-sheet analysis and stress testing of emerging market corporate sectors to shocks from exchange rate depreciation, earnings decline, and increases in borrowing cost.

### II. Rising Corporate Debt
- Corporate bond issuance rose by 10 percent ($77 billion) in 2014, with Asia leading other regions.
- Foreign currency issuances amounted to one fifth of total issuance over the last five years and grew at a compounded annual rate of 15 percent.
- Projected corporate rollover needs (major emerging markets and overseas subsidiaries): around $90 billion in 2015, rising to $130 billion in 2017–18.
- Sectors accounting for three-quarters of new debt in 2014: manufacturing, utilities, and energy.
- Regional sector concentration in 2014:
  - Latam and EMEA: energy comprised the largest share of issuance.
  - Asia: manufacturing comprised the largest share of issuance.
- Total nonfinancial corporate debt to GDP:
  - The ratio rose in about one-half of the 17-country sample, was broadly unchanged in four countries, and declined in four countries.
  - As of 2014, the ratio of total nonfinancial corporate debt to GDP exceeded levels seen in vulnerable countries during the Asian financial crisis in six of the seventeen countries: Bulgaria, Chile, China, Malaysia, Thailand, and Turkey.
- Funding patterns:
  - China, Malaysia, Thailand: corporate debt funded primarily by domestic banks and domestic capital markets.
  - Chile, Turkey, Bulgaria: corporate debt funded primarily from international capital markets.
- Data/sample notes:
  - Corporate bond data sample comprises 17 countries: Argentina, Brazil, Bulgaria, Chile, China, Hungary, India, Indonesia, Malaysia, Mexico, Peru, the Philippines, Poland, Russia, South Africa, Thailand, and Turkey.
  - Corporate bond data are available only for a few emerging economies; sample determined by data availability and J.P. Morgan corporate debt indices.

### III. Rising Vulnerabilities
- Emerging market economic growth slowed from 7.4 percent in 2010 to 4.6 percent in 2014.
- Firm-level profitability declined in 2014 across most emerging market countries relative to their five-year averages.
- Key firm-level dynamics (2010–2014):
  - Debt has grown faster than earnings in most countries, raising net debt-to-EBIT ratios.
  - Interest expense grew faster than earnings in all regions.
- Debt-at-risk analysis (Orbis sample ~43,000 firms; Appendix 2 describes ICR and debt-at-risk computation):
  - Average debt at risk rose 22 percent in 2014 from levels in 2010.
  - Highest levels of debt at risk were in EMEA; the pace of increase was most rapid in Latin America.
  - Turkey and Peru excluded from this exercise due to data gaps and lack of a good representative sample of firms.
- Caveat: estimates of total debt may be a lower bound because some corporates borrow abroad via SPVs or affiliates and do not consolidate exposures.

### IV. Stress Testing the Corporate Sector
- Stress-test shocks applied to firm balance sheets:
  - A 30 percent increase in borrowing costs (similar to average median changes during the GFC).
  - A 20 percent decline in earnings (similar to average median changes in firms’ EBIT during the GFC).
  - A currency depreciation against the U.S. dollar of 30 percent (similar to trends observed in late 1990s).
- Hedging assumptions to control for mitigants to FX exposure:
  - Natural hedges proxied by share of foreign sales to total sales (Worldscope’s median foreign sales to total sales ratios used as proxy).
  - Financial hedges: assume 50 percent of foreign currency debt interest expenses are hedged through derivatives.
- Stress-test results and key magnitudes:
  - Joint occurrence of the three shocks weakens median ICRs; in most cases median ICRs remain above 1.5.
  - Largest ICR impact in countries with higher foreign-currency borrowing and lower natural hedges.
  - Debt at risk could exceed 50 percent of total corporate debt in: Brazil, Bulgaria, Hungary, and Indonesia (post-shock).
  - For the sample as a whole, debt at risk could increase from 30 percent of total debt to 45 percent of total debt under the joint shocks.
  - Firm-size distribution:
    - Large firms would account for the bulk of new debt at risk in Asia and Latam.
    - In EMEA, one third of the new debt at risk would come from small-and-medium sized firms.
  - Commodities-related firms:
    - Post-shock debt at risk from the commodities sector could increase sharply in Hungary, the Philippines, Indonesia, and Thailand (though they remain at low levels in these countries).
    - In Brazil, commodities-related companies’ debt at risk is around one third of total debt (2014, after shocks).
  - State-owned enterprises (SOEs):
    - SOE debt at risk could exceed 3 percent of GDP in Brazil, China, Hungary, and Malaysia if shocks materialize.
- Sensitivity to hedging:
  - Results shown for scenarios “Without Hedge”, “With Natural Hedge Only”, and “With Natural and Financial Hedge” indicating material mitigation from hedges, but residual vulnerability remains.

### V. Impact on Banks
- Corporate sector stress could raise nonperforming loans and erode banks’ asset quality.
- Bank buffers considered: Tier 1 capital plus loan loss reserves (Appendix 4).
- Under the stress scenario, assuming corporate debt at risk owed to banks default with a probability of 15 percent:
  - Buffers (Tier 1 capital and provisioning) would be stretched relative to Basel III minimum capital requirement in: Bulgaria, India, Hungary, and Russia.
- Caveats:
  - Bank buffers may be overstated in some countries due to lax recognition of doubtful assets and loan forbearance.
  - Higher-than-expected corporate defaults and loan losses in a downturn could erode perceived adequate equity capital levels.

*Source: Appendix 1, _wp15216 - Appendix 1. Emerging Markets Corporate Debt Data*

### 1. Banking Sector Gross NPL ratio (percent)

### 1. Banking Sector Gross NPL ratio (percent)

### VI. Policy responses
- Strengthening the monitoring of corporate liabilities structure:
  - Mandate better disclosure of firms’ liabilities, especially those in foreign currency.
  - Improve the collection and analysis of financial data, including timely and more granular data on off- and on-balance sheet derivatives obligations and the extent of foreign currency hedging.
- Tightening microprudential policies:
  - Consider imposing limits on firms’ foreign currency borrowing where feasible.
  - Adopt more stringent bank lending and underwriting standards.
  - Countries whose banking sector has low loss absorbing buffers should consider measures to bolster banks’ resilience through the buildup of more equity capital and provisioning.
- Improving macroprudential policy tools:
  - Identify macroprudential tools to mitigate rollover risk, debt service burden, and balance sheet sensitivity to interest rate changes and exchange rate risk.
  - Refer to the IMF Staff Guidance Note on Macroprudential Policy—Detailed Guidance on Instruments for details on tools, benefits, costs, and the need for recalibration.

### VII. Summary and conclusions
- Emerging market corporate debt has risen sharply in recent years, supported by low interest rates and easy access to global capital markets.
- High levels of leverage could render firms vulnerable to shocks, especially in an environment of weak economic growth.
- Analysis based on 2014 corporate balance sheet information in a sample of emerging market countries:
  - Stress test exercise shows that a combination of shocks (exchange rates, weaker-than-expected economic growth, higher borrowing costs) could significantly erode firms’ interest coverage ratios.
  - Overall corporate sector risk remains moderate in most countries in the sample.
  - Adverse impact on debt-service ability is accentuated where corporates borrow more in foreign currency but have low natural hedges.
- Corporate sector stress will affect the banking sector through increases in nonperforming loans.
  - Banking systems where Tier 1 capital and provisioning are low would be most vulnerable.
- Policy implication:
  - Carefully monitor and contain the rapid growth of corporate leverage through a combination of macro- and microprudential policies.
  - Guard against the accumulation of unhedged foreign currency liabilities to preserve financial stability.

### Appendix 1 — Corporate debt data construction and gaps
- Corporate debt definition:
  - Aggregate comprises borrowing from banks and bonds issued in the domestic and overseas capital markets, denominated in local and foreign currencies.
- Data gaps:
  - Data on foreign currency liabilities, their currency breakdown and maturity structure remain sparse.
- Proxy construction for total corporate debt:
  - Total corporate debt is estimated as: External Debt + Loans from Domestic Banks + Borrowings from Domestic Capital Markets
  - These are adjusted using year-end exchange rates.
- Foreign currency-denominated debt approximation:
  - Approximated by external debt based on:
    - Preference of external corporate bond funds for foreign-currency-denominated bonds.
    - Weak debt covenants and rare international credit assessments for some local currency corporate bonds.
- Note on debt maturity and default classification:
  - Debt maturity data incomplete; Bloomberg provides corporate bond maturity but bank loan maturities are not readily available publicly.
  - A firm may be classified in default if any interim interest or coupon payment is missed even though principal is not due.

### Appendix 2 — Interest Coverage Ratio (ICR) and Debt at Risk
- Interest Coverage Ratio:
  - ICR = Earnings/Interest Expense, where Earnings is measured by earnings before interest and taxation (EBIT).
  - An ICR of less than 1 implies the firm is not generating sufficient revenues to pay interest on its debt without adjustments.
- Debt at Risk:
  - Analysts often use an ICR of 1.5 as an early warning threshold.
  - Definition used: debt at risk = debts of firms with ICR below 1.5.
  - The share of debt at risk indicates the proportion of outstanding debts vulnerable due to weak debt servicing capacity.
  - Historical note: During the Asian Financial Crisis, countries whose corporate sector median ICR was below 1.5 were more vulnerable.
- Practical implications:
  - An ICR lower than 1.5 flags potential vulnerability to funding risks, particularly when market liquidity is scarce.

### Appendix 4 — Nonperforming loans and banks’ loss absorbing buffers (methodology and parameters)
- Increase in corporate NPL (stress scenario) computed as:
  - Increase Corporate NPL = Increase in Corporate Loan at Risk x Probability of Default x Loss Given Default
- Components and parameter values used:
  - Increase in Corporate Loan at Risk:
    - Derived from scaling of the sample total debt and increase in debt at risk by the amount of total bank lending to the nonfinancial corporate sector.
  - Probability of Default:
    - Approximated as 15 percent based on Moody’s default probability for corporate debts with interest coverage ratio of 1.5 for a three-year horizon, from 1970-2012.
  - Loss Given Default (LGD):
    - Computed as an average of 45 percent (Basel II Foundation Approach for senior claims on corporates, sovereigns and banks not secured by recognized collateral) and country-specific LGDs from The World Bank’s data on “Resolving Insolvency”.
    - LGD formula: LGD = 1 - Recovery Rate
- Bank loss absorbing buffers:
  - Defined as Tier 1 capital and the excess of provisioning over the stock of NPL.
  - After-shock loss absorbing buffers computed as:
    - Tier 1 capital + Loan Loss Reserves – Existing Stock of NPL – Projected Increase in NPL
  - Risk-Weighted Assets are used in normalizing buffers.

### Key numerical thresholds and policy-relevant figures cited
- Basel III minimum Core Tier 1 capital: 4.5 percent
- Basel III minimum Core Tier 1 ratio with Capital Conservation: 7 percent
- Probability of default used in stress test: 15 percent
- Average Loss Given Default used: 45 percent
- ICR thresholds:
  - ICR < 1: firm not generating sufficient revenues to pay interest without adjustments
  - ICR < 1.5: early warning threshold for debt at risk

### Imputed Recovery Rates and Loss Given Default (LGD) by country (Appendix Table 2)
- Argentina: Recovery rate 28.67, Loss Given Default (LGD) 71.4
- Brazil: Recovery rate 25.87, Loss Given Default (LGD) 74.2
- Bulgaria: Recovery rate 33.2, Loss Given Default (LGD) 66.8
- Chile: Recovery rate 30, Loss Given Default (LGD) 70
- China: Recovery rate 36, Loss Given Default (LGD) 64
- Hungary: Recovery rate 40.2, Loss Given Default (LGD) 59.8
- India: Recovery rate 25.7, Loss Given Default (LGD) 74.3
- Indonesia: Recovery rate 31.7, Loss Given Default (LGD) 68.3
- Malaysia: Recovery rate 81.3, Loss Given Default (LGD) 18.7
- Mexico: Recovery rate 68.1, Loss Given Default (LGD) 31.9
- Philippines: Recovery rate 21.2, Loss Given Default (LGD) 78.8
- Poland: Recovery rate 57, Loss Given Default (LGD) 43
- Russian Federation: Recovery rate 43, Loss Given Default (LGD) 57
- South Africa: Recovery rate 35.7, Loss Given Default (LGD) 64.3
- Thailand: Recovery rate 42.3, Loss Given Default (LGD) 57.7

*Source: IMF working paper content unit — 1. Banking Sector Gross NPL ratio (percent).*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2015/_wp15216.pdf_