Egypt and the World Bank have entered into a new $7bn partnership for 2023-2027 after the latter said it had approved the agreement. The focus is to boost private sector jobs, provide better health and education services, and adapt to climate change. Egypt has been struggling ever since the Russia-Ukraine war with raw material prices soaring. Also the government’s privatisation plans with sales of state assets have been repeatedly delayed. In a statement, the World Bank said that the Country Partnership Agreement (CPF) will entail $1bn annually from the IBRD and about $2bn over five years from the IFC. Its dollar bonds have been trending lower since February when it was downgraded to B3 from B2 by Moody’s on the back of “reduced external buffers and shock absorption capacity”

Egypt’s dollar bonds were trading a tad higher this morning – its 7.3% 2033s are up 0.6 points to 61.57 cents on the dollar.

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