Egypt’s credit default swap spreads sharply narrow as economy looks up: FinMin

Egypt has seen a sharp decline in the cost of international borrowing this year, Finance Minister Ahmed Kouchouk said Wednesday, highlighting growing investor confidence in the country’s fiscal and economic reforms.

Kouchouk told reporters at a weekly press briefing with Prime Minister Moustafa Madbouly that five-year Egyptian government bonds, which required a 9.5 per cent yield at the start of 2025, now trade at just 5.9 per cent. Eight-year bonds fell from roughly 10 per cent to 6.8 per cent, while 25-year bonds dropped from about 11.5 per cent to 8.7 per cent, with further gains expected in 2026.

Credit default swap spreads, a key gauge of sovereign risk, have also narrowed sharply, falling from 1,800 points in 2023 to 271 points, indicating increased market confidence in Egypt, the minister noted.

Kouchouk added that Egypt’s economy expanded 5.3 per cent in the first quarter of 2025, while private investment rose over 27 per cent after adjusting for inflation, reflecting the impact of structural reforms and fiscal measures aimed at boosting growth and attracting foreign capital.

“The achievements demonstrate the strength of Egypt’s reforms and its commitment to sustainable growth while protecting citizens from new financial burdens,” Kouchouk said.

Attribution: Amwal Al Ghad English