Egypt’s post-IMF pain a lesson for debt-laden markets

Taking a hit: Farmers harvest rice in a field in Qaha, north of Cairo. Egypt turned to international lenders for support after struggling with elevated commodity prices as a result of Russia’s invasion of Ukraine. — Reuters

DUBAI: Egypt’s International Monetary Fund (IMF)-led strategy to overcome its debt distress sounds like a perfect recipe for a rally in the nation’s debt – except that money managers are sceptical about the plan’s execution.

In quick succession last month, the North African nation won a rescue package from the IMF tied up billions more in bilateral funding, embraced a more flexible currency regime and raised interest rates.