Citigroup reduces overweight call on Egypt’s bonds
Updated 8/13/2023 8:09:00 AM
Arab Finance: Strategists at Citigroup have cut their overweight call on Egypt’s bonds over concerns about the country’s slow progress in selling state assets, Bloomberg reported.
They noted that the country’s initial public offering (IPO) program is “increasingly falling behind targets.”
For its part, the International Monetary Fund (IMF) said that it is waiting for the IPO deals of state assets and actual flexibility in Egypt’s currency before conducting the first review of the $3 billion rescue program.
“Idiosyncratic risks remain elevated in Egypt,” the strategists said, adding that “the prospect of a delayed IMF agreement is increasing as the pace of privatization appears insufficient to meet its quantitative performance criteria.”
Nevertheless, Citigroup is still optimistic about the Egyptian bonds due in 2029, given that announcing any additional deals can boost the credit.
Related News
