"Egypt’s default risk soared to a record after a speech by President Mohamed Mursi failed to alleviate investor concerns ahead of planned nationwide rallies this weekend.
Five-year contracts that protect against default by the second-most indebted Arab country rose 12.5 basis points to 887.5 at 3:26 p.m. in Cairo, according to CMA prices, the highest on a closing basis since Bloomberg started tracking them in 2009. The country’s risk, among the highest 10 in the world, for the first time climbed above that of Pakistan, which has the same junk rating of Caa1 at Moody’s Investors Service.
Pro- and anti-government camps plan rallies for June 30, when Mursi marks one year in office. The president in a nationally-televised address last night blamed the nation’s crisis on an opposition that has rejected his calls for talks. Clashes between his supporters and opponents, who accuse him of consolidating power and failing to revive the economy, have injured hundreds this week and killed one person."
'via Blog this'
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