Egypt is actively pursuing re-inclusion in the JPMorgan Chase & Co. bond index, tracked by more than $200 billion worth of emerging-market funds, Bloomberg reported. 

Some emerging-market investors are lobbying for Egypt’s return in the JPMorgan index, which would allow them to invest in local-currency debt at attractive prices, Bloomberg reported, citing informed sources.

 A relisting will allow the Egyptian government to attract long-term investments from passive funds that track the index, the report said.

Egypt was removed from JPMorgan’s Government Bond Index-Emerging Markets on January 31 and is not eligible for re-inclusion for at least 12 months.

The exclusion from the index in early 2024 was driven by a significant foreign exchange crisis. Since then, the North African nation has experienced a turnaround, bolstered by investments and loans from a $57 billion global bailout by the UAE and the International Monetary Fund, the news agency said.

The exclusion in early 2024 was Egypt suffered from a dire foreign-exchange crunch. However, there’s been a turnaround since, with the country now buoyed by investments and loans from a $57 billion global bailout led by the UAE and the International Monetary Fund (IMF), Bloomberg reported.   

(Editing by Seban Scaria seban.scaria@lseg.com)