Arab Today, arab today egypt eclipses dubai in cost of default protection
Last Updated : GMT 05:12:30
Arab Today, arab today
Arab Today, arab today

Sign of growing concern about political stability

Egypt eclipses Dubai in cost of default protection

Arab Today, arab today

Arab Today, arab today Egypt eclipses Dubai in cost of default protection

The cost of insuring Egypt's government debt against default has risen  
Dubai - Arabstoday

The cost of insuring Egypt's government debt against default has risen   The cost of insuring Egypt's government debt against default has risen above the cost of insuring Dubai's, a sign of growing concern about political stability ahead of elections scheduled to begin next month. Egypt's credit default swap spreads, which track the amount of money investors would have to pay for protection against a debt default, rose above Dubai's on Tuesday for the first time in about a month, according to a Bloomberg News report.
Dubai's swap spreads have been some of the highest in the region since the onset of the financial crisis forced several big government-owned businesses to restructure debt to avoid default.
"We should never underestimate the importance of the political process, especially in emerging markets," said Plamen Monovski, the chief investment officer at Renaissance Asset Managers.
"In Egypt, it is simply unclear which way things will go, but there is quite a real possibility Egypt will go anti-business."
Perceptions of risk have also risen in Egypt because of a recent downgrade of the country's debt by Standard and Poor's, a global credit ratings agency.
Political instability has also persisted since the country's revolution in February ousted Hosni Mubarak from the presidency.
For investors, Egypt was in some ways "genuinely uncertain", Mr Monovski said.
The continuing turmoil and uncertain political future have also prompted global bodies to reduce projections of economic growth in Egypt.
The country's GDP grew about 5 per cent in 2009 and last year but is projected by the IMF to grow by just 1.2 per cent this year.
Growth has been dampened by the effect of the revolution on the country's critical tourism industry as well as a fall-off in foreign investment and trade with Europe.
Many investors are waiting on the sidelines until Egypt's political situation stabilises. S&P's downgrade this week "reflects our opinion that risks to macroeconomic stability have risen during the transition period for Egyptian political reform," Trevor Cullinan, an S&P analyst, said in a report on Tuesday.
"A further downgrade is possible if the political transition toward a more pluralistic society does not proceed as smoothly."
 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today egypt eclipses dubai in cost of default protection Arab Today, arab today egypt eclipses dubai in cost of default protection

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today egypt eclipses dubai in cost of default protection Arab Today, arab today egypt eclipses dubai in cost of default protection

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday