IS PRIVATE REPLACING PUBLIC CREDIT IN EMERGING MARKETS?

The discussion centers on the role of private credit in emerging markets, especially as public credit tightens. Princess Rasis emphasizes the complementarity between public and private markets in Saudi Arabia, highlighting PIF's catalytic role in developing private credit strategies. Marcio notes the advantages of private credit in Brazil, such as flexibility and higher yields, but cautions against lowering investment standards. Melvin addresses the African context, where private credit is nascent but catalytic, often funded by DFIs and enabling more equity investments, particularly in technology. Tim highlights the role of UK Export Finance in complementing traditional lenders and stimulating trade in emerging markets. The speakers discuss the challenges and opportunities in various emerging markets, including the need for infrastructure and SME financing, as well as the impact of AI on financing demands. Participants explore the definition of "emerging market" and whether the label still holds true for countries like Saudi Arabia and Brazil.