Egyptian debt insurance costs fall to lowest level since April 2022 amid investment deal with UAE
Date
2/29/2024 8:15:49 AM
(MENAFN) According to data from Standard & Poor's Global Market Intelligence released on Thursday, the expense of insuring Egyptian debt in hard currency has reached its lowest point since April 2022. This decline in insurance costs coincides with a notable increase in state bonds following the announcement of a significant investment agreement between the Egyptian government and the United Arab Emirates (UAE).
During trading on Thursday, the initial expense associated with Egypt's five-year credit risk swap contracts experienced a notable decrease from 29 basis points a week prior to 18 basis points. Similarly, traditional contracts utilized for insuring debt against the risk of default saw a decline to 586.54, marking their lowest level since April 2022.
The Egyptian Cabinet disclosed the finalization of a substantial investment partnership with the UAE aimed at the development of Ras El Hekma, situated to the west of Alexandria. This agreement, heralded as one of the largest deals of its kind, is poised to significantly bolster dollar liquidity within Egypt while simultaneously addressing the nation's economic challenges.
The investment pact underscores a strategic collaboration between Egypt and the UAE, leveraging substantial financial resources to drive the development of Ras El Hekma. Beyond its immediate economic implications, the agreement holds the potential to foster long-term growth prospects and stability within Egypt's financial landscape.
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