Egypt Debt Bulls at Citi Get Nervous as IMF Crunch Time Nears

  • Privatization is falling behind targets, Citi strategists say
  • Egyptian dollar debt had outperformed emerging markets in July

Posters displaying an image of President Abdel-Fattah El-Sisi, in the central business district of Egypt's New Administrative Capital, east of Cairo.

Photographer: Islam Safwat/Bloomberg
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Citigroup Inc. is taking a less upbeat line on Egyptian bonds about three months after turning optimistic about their prospects, as concern builds over the cash-strapped nation’s slow progress in selling state assets.

Strategists at the New York-based bank said they reduced their overweight call on Egyptian debt, saying the nation’s privatization plan is “increasingly falling behind targets.”