Zahabia Gupta warns of consequences if Senegal does not secure an IMF program
via SeneNews6 min read
Zahabia Gupta, head of emerging markets credit risk research at Standard & Poor's Global Ratings, has warned about the potential consequences if Senegal fails to secure a program with the International Monetary Fund. She highlighted that the country is facing increasing financial market pressure and a continuous degradation of its sovereign rating. Gupta stated that without an IMF program, questions about Senegal's long-term financing sustainability could intensify, especially given its significant financing needs. This alert follows S&P's decision in late March to lower Senegal's local currency credit rating from B-/B to CCC+/C, maintaining a negative outlook, citing high public debt refinancing risks and a lack of significant multilateral support. An IMF agreement is seen as crucial to restoring market confidence, potentially providing access to more favorable concessional financing and strengthening budgetary credibility. An IMF mission is expected in Dakar during the week of June 15, 2026, for technical discussions to assess macroeconomic prospects, financing needs, and reform priorities, according to Julie Kozack, Director of the IMF's Communications Department. These discussions are strategically important as they could influence the perception of Senegalese risk in international markets and determine the country's future access to essential financial resources for development.
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