Senegal Has an IMF Loan, Now What?
The deal follows months of talks after $11 billion in hidden borrowing was uncovered, and it still needs IMF board approval.
- On Tuesday, Senegal and the International Monetary Fund reached a $2.2 billion, 3-year lending agreement to support economic reforms nearly two years after the previous program was suspended over hidden public debt.
- President Bassirou Diomaye Faye's government secured the deal after uncovering more than $11 billion in previously misreported borrowing, which prompted the IMF to suspend a prior $1.8 billion program in 2023.
- Senegal's total public-sector debt reached 132 percent of GDP at the end of 2024, prompting the IMF to require "decisive corrective measures" to address the misreporting and restore debt sustainability.
- National Assembly Speaker Ousmane Sonko demanded details on "debt treatment" to ensure transparency, having previously called debt restructuring a "disgrace" that could compromise national sovereignty.
- Finance Minister Cheikh Diba stated the agreement "paves the way for financing prospects," though the deal still requires final approval from the IMF's executive board before implementation.
12 Articles
12 Articles
Africa: Senegal Secures $2.2b IMF Deal As Debt Restructuring Looms
Senegal reached a staff-level agreement with the International Monetary Fund for a $2.2 billion, 3-year lending programme as the government seeks to restore debt sustainability after uncovering more than $11 billion of previously misreported borrowing. The agreement still requires approval from IMF management and its Executive Board.
Senegal has an IMF loan, now what?
The agreement came after a prior 2023 IMF deal for $1.8 billion was suspended following the discovery of unreported debt under the previous administration. With a total public-sector debt estimated at 132 percent of GDP at the end of 2024, Senegal is one of the most heavily indebted countries in sub-Saharan Africa. From restructuring to the loan's role in Senegal's ongoing political drama, here is what is likely on the horizon. Road to more fin…
Two years after the revelation of the existence of a hidden debt, Dakar obtained an agreement in principle from the IMF for a loan of $2.2 billion. Financing, restructuring, vote in Parliament: three major unknowns remain.
The recent coordinated announcements by the Senegalese government and the International Monetary Fund (IMF) aimed at restoring a climate of confidence conducive to investment in the country raise serious concerns in some international financial circles for the time being. [...]
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