IMF mission to Senegal reports substantial progress in discussions on new support program
A mission from the International Monetary Fund IMF in Senegal, which began on August 19, has reported "substantial progress" in its discussions with Senegalese authorities. A spokesperson for the IMF told Reuters that the talks are continuing in a "constructive spirit." The negotiations are centered on Senegal's debt and the stabilization of public finances, with the aim of establishing a potential new support program from the Bretton Woods institution. While positive developments are anticipated, a major concern remains the country's public debt. The IMF estimates that Senegal's undeclared additional debt for 2024 exceeds $11 billion, based on data from the end of 2023. To secure IMF support, Senegalese authorities will need to address the implications of this undeclared debt and present a credible plan to stabilize public finances and restore budgetary balance. The IMF is looking for measures that will enable Senegal to sustainably manage its debt burden. The discussions are ongoing, with both parties working to finalize the remaining points of negotiation. Any agreement reached at the staff level will still need to follow the IMF's internal procedures for final validation.
