Egyptian officials appear to be hoping for a revival of the tourism sector as part of their strategy to improve the external position, but we still think that the currency will need to weaken further, which may raise concerns about the government's FX debts. Elsewhere in Tunisia, after securing a loan last week, the government managed to make a large Eurobond payment on Tuesday to avoid falling into default. However, we think this only kicks the can down the road and a sovereign default looks inevitable.
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