{"id":623956,"date":"2024-06-13T00:00:00","date_gmt":"2024-06-13T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/06\/13\/foreign-investors-are-back-to-loving-our-once-unloved-local-debt\/"},"modified":"2024-06-13T00:00:00","modified_gmt":"2024-06-13T00:00:00","slug":"foreign-investors-are-back-to-loving-our-once-unloved-local-debt","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/06\/13\/foreign-investors-are-back-to-loving-our-once-unloved-local-debt\/","title":{"rendered":"Foreign investors are back to loving our once-unloved local debt"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>A comeback story: <\/strong>Egypt joins Pakistan, Nigeria, and Kenya as one of the once-unloved emerging markets that \u201clured\u201d investors back into their local debt instruments with higher interest rates and liberalized exchange rates, the <a target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/47cd6c6e-e9aa-41af-abc3-5a7dd44d0be2\" style=\"\" rel=\"noopener\">Financial Times<\/a> writes. <strong>Egypt saw investors pour<\/strong><strong> some USD 15 bn into local bonds this year<\/strong>, the majority of which came following the announcement of the <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/b0b97fcf-95b0-4d39-86ae-0a4989221520\" style=\"\" rel=\"noopener\">Ras El Hekma<\/a> agreement.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>We\u2019re still well off our peak: <\/strong>Foreign investors currently hold about one-tenth of our local debt \u2014 up from their 2022 lows, but still well below their peak in 2021, according to the FT.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>It doesn\u2019t come cheap: <\/strong>Egypt, Nigeria, and Pakistan are expected to spend over a third of their revenues on debt interest payments by 2028. On top of this, they could be forced to keep their interest rates elevated if the US doesn\u2019t start cutting rates soon, keeping the cost of debt high. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>ALSO- Earlier than usual heatwaves in Egypt have caught the attention of the foreign<\/strong><strong> press<\/strong>, with <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/features\/2024-06-12\/egypt-early-heat-wave-is-ominous-warning-for-economies-trade?srnd=homepage-middle-east\" style=\"\" rel=\"noopener\">Bloomberg<\/a> reporting on how the country is heating up twice as fast as the rest of the world. As a \u201cbellwether for the effects of climate change,\u201d crop failure, heat-related deaths, and power cuts in Egypt offer a warning of what may be in line for other nations in summers to come.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Foreign investors have poured some USD 15 bn into our local bonds this year<\/p>\n","protected":false},"author":1,"featured_media":623957,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7233],"tags":[88,104,72],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-623956","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-egypt-in-the-news","tag-debt-watch","tag-economy","tag-enterpriseam","wpautop","entry"],"acf":{"mongo_id":"d46ac1c7-8968-465f-b75d-7a24f07d71d6","order":"11","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/6\/1224.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Foreign investors are back to loving Egypt\u2019s once-unloved local debt","related_issue":[623938],"teaser":"Foreign investors have poured some USD 15 bn into our local bonds this year","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/6\/.ee5aaff8-8ff9-4b33-b13a-a3da741bc989.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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EGP 350 bn) as of the end of May from USD 20.9 bn (EGP 327 bn) in April, according to central bank\u2026","rel":"","context":"In &quot;DEBT WATCH&quot;","block_context":{"text":"DEBT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/debt-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/6\/378.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":562671,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/02\/foreign-investors-are-still-buying-our-treasuries\/","url_meta":{"origin":623956,"position":1},"title":"Foreign investors are still buying our treasuries","author":"enterpriseam admin","date":"2 June 2021","format":false,"excerpt":"FROM THE DEPT. OF GOOD NEWS- Foreign holdings of Egyptian treasury bills jumped to USD 20.8 bn (c. EGP 327 bn) as of the end of April, up from USD 20 bn (EGP 314 bn) in March, according to central bank figures (pdf) released yesterday. Investors put almost USD 3\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/6\/36.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":548629,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/08\/16\/foreign-investors-are-slowly-coming-back-to-the-debt-market\/","url_meta":{"origin":623956,"position":2},"title":"Foreign investors are slowly coming back to the debt market","author":"enterpriseam admin","date":"16 August 2022","format":false,"excerpt":"FROM THE DEPT. OF GOOD NEWS- Foreign flows have begun to trickle back into Egypt\u2019s local debt market. Foreign holdings of Egyptian treasury bills rose for the first time in five months in June, a tentative sign that Egypt may have seen the worst of the 2022 emerging-market sell-off which\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":543459,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/02\/02\/finmins-ahmed-kouchouk-mitigating-the-fed-our-first-sovereign-sukuk-and-how-we-got-back-onto-the-jpmorgan-bond-index\/","url_meta":{"origin":623956,"position":3},"title":"FinMin\u2019s Ahmed Kouchouk mitigating the Fed, our first sovereign sukuk and how we got back onto the JPMorgan bond index","author":"enterpriseam admin","date":"2 February 2022","format":false,"excerpt":"EXCLUSIVE- How our inclusion in the JPMorgan indices will help with us manage our debt as countries around the world raise key interest rates: On the face of it, the timing of Egypt rejoining JPMorgan\u2019s emerging-market bond index might not have been ideal, considering the US Federal Reserve\u2019s push to\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/2\/18.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":578364,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/12\/26\/its-been-a-helluva-year-for-global-debt-markets\/","url_meta":{"origin":623956,"position":4},"title":"It\u2019s been a helluva year for global debt markets","author":"enterpriseam admin","date":"26 December 2022","format":false,"excerpt":"It has been a tumultuous year in the global debt markets as central banks around the world have aggressively raised interest rates in response to the largest wave of inflation since the 1970s. Reacting to price growth spurred by Russia\u2019s invasion of Ukraine in February and the impact of the\u2026","rel":"","context":"In &quot;YEAR IN REVIEW: DEBT&quot;","block_context":{"text":"YEAR IN REVIEW: DEBT","link":"https:\/\/enterpriseam.com\/egypt\/category\/year-in-review-debt\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/12\/524.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":543430,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/02\/01\/egypt-rejoins-jpmorgan-bond-index\/","url_meta":{"origin":623956,"position":5},"title":"Egypt rejoins JPMorgan bond index","author":"enterpriseam admin","date":"1 February 2022","format":false,"excerpt":"Egypt rejoined JPMorgan\u2019s emerging-market bond index following a decade of absence yesterday in a move that could bring new passive flows into the local debt market. Fourteen EGP bonds worth around USD 26 bn have been added to the JPMorgan GBI-EM Global Diversified Index, giving Egypt a weighting of 1.85%,\u2026","rel":"","context":"In &quot;DEBT WATCH&quot;","block_context":{"text":"DEBT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/debt-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/2\/2.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/623956","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=623956"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/623956\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/623938"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/623957"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=623956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=623956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=623956"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=623956"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=623956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}