Egypt’s Soaring Rates Attract Inflows but Carry Risks, S&P Warns
This article is for subscribers only.
Egypt must find a way to pay less on its debt if it’s to weather a potential increase in global interest rates, S&P Global Ratings warned in a report on Sunday.
Egypt has the highest differential between its key policy rates and inflation among more than 50 economies tracked by Bloomberg, making its bonds and bills a favorite among international investors hungry for yield. Foreign holdings in the North African nation’s notes stand at more than $28 billion, an important buffer as tourism awaits a full recovery from the coronavirus pandemic.