IMF agrees to $2.2 billion loan program for Senegal after previous deal suspended
The International Monetary Fund IMF announced a new $2.2 billion loan program for Senegal, following the suspension of a prior agreement due to the discovery of previously unreported debt. The current government, which came to power after an opposition electoral victory, accused the former administration of ex-president Macky Sall of concealing the true extent of the country's budgetary situation. The new 36-month arrangement aims to support Senegal’s economic and financial reform program for 2026–2029 and requires corrective measures for data misreporting. Finance Minister Cheikh Diba expressed satisfaction with the technical agreement. Mercedes Vera Martin, division chief at the IMF African Department, noted that authorities have improved transparency through audits and reconciled historical data. The agreement also requires financing assurances from Senegal’s partners. Senegal faces significant debt, with public-sector debt estimated at 132 percent of GDP by the end of 2024. While the overall fiscal deficit narrowed, the country relies on regional financial markets at higher costs. President Bassirou Diomaye Faye and former Prime Minister Ousmane Sonko, now speaker of the National Assembly, have differing views on debt restructuring. Martin clarified that the deal includes a "debt treatment" plan, which Diba described as an initiative by Senegal to address its debt in a way that accounts for its specific characteristics, not a traditional restructuring. Moody’s recently do
