The ceasefire agreement between Israel and Hamas has driven up the value of Egypt's international bonds
Egypt could once again become a natural gas exporter in 2027, once a number of rich offshore fields come on stream. Egyptian Prime Minister Mustafa Madbouli (pictured) says natural gas production will return to normal by June next year, after which there should be no more blackouts in the North African country.
Egypt currently has to import significant amounts of natural gas from Israel to meet the fuel needs of its power plants. Meanwhile, prices of dollar-denominated Egyptian bonds traded on international stock exchanges rose after the announcement of the ceasefire agreement in Gaza. According to data published by Reuters news agency, the annualized credit default swap, which has a credit risk transfer function as a hedging instrument, fell to 3.19%, down from 3.54% at the end of negotiations before the deal between Israel and Hamas was announced. The cost of five-year insurance contracts fell from 5.74% to 5.41%.
The cease-fire agreement “reduces geopolitical risk to some extent, although it is unclear how long the cease-fire can last,” Michael Brown, senior research strategist at Pepperston Financial Services in London, told Reuters.