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Bondholders' relief over a Gulf pledge to prop up Bahrain's struggling economy has given way to anxiety now that three weeks have passed without any sign aid is on the way.While other Gulf nations scrambled to cope with falling oil prices, Bahrain has been slow to implement policy changes and attract foreign investment. Its rich neighbors pledged last month to consider all options to reduce Bahrain's ballooning debt and shore up its foreign-exchange reserves to help avoid a currency devaluation. That eased concerns of a default and fueled a record jump in Bahrain's dollar-denominated bonds. Bloomberg reported last year the three Gulf countries had asked Bahrain to do more to bring finances under control before receiving aid.The spreads on Bahrain's bonds will remain "relatively wide," said Jonathan Mann, London-based head of emerging market debt at BMO Global Asset Management, which manages $260 billion.Investors will probably get details of Bahrain's program at the end of the third quarter, at the earliest, he said.
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