Egypt Debt Yield Surge Seen Fading as Deficit Eases: Arab Credit

The increase in Egypt’s borrowing costs after President Abdel-Fattah El-Sisi raised energy prices will be short-lived because the measures will help narrow the budget deficit, Emirates NBD PJSC’s Egypt unit and Capital Economics said.

El-Sisi’s decision to cut fuel subsidies will reduce borrowing needs, and may help lower yields by as much as 1 percentage point by the end of the quarter, said Nour Mohei-el-Din, assistant general manager for treasury at Emirates NBD SAE, a unit of Dubai’s biggest bank.