Gulf aid eases Egypt's default risk

07/11/2013 | Bloomberg

After Saudi Arabia, Kuwait and the United Arab Emirates promised Egypt $12 billion in aid, Egyptian credit default swaps dropped 142 basis points, or 17%, the largest decline since February 2011. "Gulf aid providers now see the deadlock in Egypt as broken," said Mona Mansour of CI Capital. "Their willingness to support the transition government with cash supports foreign reserves and the currency and allows future lifting of capital controls."

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