Egypt's default risk drops after 'Yes' vote

Ahram Online , Tuesday 22 Mar 2011

Cost of protecting bonds falls following referendum and pledge to reopen stock market

Egypt's default risk is dropping at its fastest rate since July after voters approved amendments to the Constitution on Saturday and the government allows equity trading for the first time in seven weeks, according to the business channel Bloomberg.

The cost of protecting Egyptian bonds from default for five years fell 4.6 points to 371.7 on Monday, the fourth consecutive day of declines and the longest stretch of losses in eight months. Contracts climbed to 42.3 on 31 January after the start of protests and the closure of the stock market.

The approval of constitutional amendments opens the way for parliamentary and presidential elections by the end of the year. The cabinet met yesterday in Cairo, amid protests from investors complaining of the heavy toll to their livelihood, and agreed to reopen the Bourse on Wednesday.


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