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Egypt is vulnerable to external financing shock on faster US rate increases

The country has one of the highest ratios of interest-to-government revenue in Africa and “much of this goes to foreign investors due to the portfolio inflows into the local debt market”, says Mark Bohlund, senior credit research analyst at REDD Intelligence in London. Bohlund says he shares the concerns of asset managers and credit rating agencies with regards to Egypt’s external debt sustainability.

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