Citigroup Sees Egypt’s Clout in Funding Talks Boosting Bonds
- Egypt’s debt has outpaced Mideast peers since start of the war
- Nation’s strategic role may increase its bargaining power
The Central Bank of Egypt in Cairo, Egypt.
Photographer: Islam Safwat/BloombergThis article is for subscribers only.
Citigroup Inc. is turning bullish on Egypt’s battered dollar debt, arguing that the North African nation will obtain access to financing as it’s seen as too important geopolitically to be allowed to fail.
That will support the bonds of the most populous Arab nation as it grapples with its worst economic crisis in years, Citigroup strategists said in a note. Sales of state assets are also picking up and the government may be on track to meet targets set by the International Monetary Fund, they said.