In recent years, national development banks in emerging
markets have been forced to adapt their financing strategies
– in a large part due to fiscal constraints created by huge
government spending programmes during the pandemic.
At the same time, there is a greater demand to respond to the
need to provide more help in low-income communities, often through
boosting infrastructure that allows private sector economies to
flourish. This growing pipeline – daunting enough in scale
– presents a further challenge by needing to meet sustainable
construction methods.
This complex challenge requires greater emphasis on partnerships
delivering the pipeline of projects that are so needed in emerging
markets (EM), and these fiscal constraints are now having a
material impact on development banks' abilities to simply
underwrite the majority of a country's project finance needs.
The consolidated public sector primary deficit is expected to
worsen in 2023 and the debt-to-GDP is
