The International Monetary Fund has confirmed that its latest mission to Senegal ended without agreement on a new financing arrangement, but the Fund says it expects negotiations to reach a conclusion soon as Dakar seeks fresh support to stabilise public finances.
Mission Chief Edward Gemayel told journalists on Thursday that discussions with Senegalese authorities will continue in the coming weeks, adding that the government is demonstrating commitment to restoring fiscal credibility after revealing billions of dollars in previously undisclosed public debt inherited from the former administration.
“We still need more talks, but hopefully we can reach a conclusion soon,” Gemayel said.
Last year, the IMF suspended Senegal’s $1.8 billion programme after the new government disclosed unreported liabilities that pushed its official debt stock sharply higher. The Fund now estimates that by the end of 2024, public sector debt hit roughly 132% of GDP — including about 4% of GDP in domestic arrears.
Dakar is now seeking a new programme but also needs IMF board approval for a debt misreporting waiver — a requirement triggered by the nondisclosure. Gemayel said both the waiver and the new loan request are being prepared in parallel, though they may not be approved at the same time.
Senegal’s latest budget framework aims to cut the fiscal deficit to 5.4% of GDP by 2026, down from 7.8% this year. But the IMF says some revenue assumptions may be overly optimistic and advised the authorities to adopt more conservative forecasts.
An IMF team has been in Dakar since October 22 conducting technical work, including debt sustainability analysis, which will ultimately determine whether Senegal must restructure or simply re-profile its debt.
Markets remain divided over whether the IMF will demand an actual restructuring — which could mean losses for creditors — or an extension of maturities.
Senegal’s finance ministry said it intends to continue pursuing “active debt management operations” on both domestic and external liabilities to reduce vulnerabilities.
According to the IMF, however, Senegal’s aggressive deficit-cutting plans demonstrate how determined the government is to push its debt back onto a downward path — a key condition for unlocking the next round of Fund support.
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Source:Africa Publicity
