Bahrain dollar bond issuance, Egypt softening the blow

Bahrain became the latest EM dollar bond issuer this week, and the $2bn raised will help it to meet large upcoming debt repayments. But officials still need to tighten fiscal policy over the coming years to put the public finances on a more sustainable footing. Elsewhere, Egypt’s central bank hiked interest rates late last week as the IMF announced it was edging closer to a new deal. Any agreement will almost certainly come with a devaluation and pledges for a fully flexible pound, but rumours of fresh import controls may scupper hopes for the latter.