Thursday 16 May 2013

Qatar no IMF stand-in as Egypt default risk jumps

"Egypt’s credit default swaps are signalling that a $3bn lifeline from Qatar isn’t enough to assuage concern the North African country will struggle to meet its obligations without International Monetary Fund aid.

Five-year contracts for the most-populous Arab nation climbed 47 basis points this month to 630, the highest level in a month, yesterday, according to data provider CMA. That compares with an average gain of seven basis points to 263 for contracts of Middle East peers.

Talks with the IMF, now in a third year, have yet to come to fruition as concern over Egypt’s ability to meet its financing needs led Standard & Poor’s to cut the country’s rating to CCC+, the lowest globally apart from Cyprus."

'via Blog this'

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