IMF Reaches Agreement with Senegal on New $2.2 Bn Loan Programme
Talks are advancing on a replacement loan as Senegal works to address more than $11 billion in undisclosed debt, analysts said.
- On Tuesday, the International Monetary Fund and Senegal neared a replacement loan agreement following constructive mission discussions, with officials expecting "positive developments" at the mission's conclusion.
- Following disclosure of significantly more debt than previously reported, the IMF suspended its $1.8 billion program in 2024 after President Bassirou Diomaye Faye's government took office.
- Global ratings agency Moody's downgraded Senegal to "Caa2" from "Caa1" on Friday, citing rising refinancing risks and limited scope for debt reduction mid-negotiations.
- IMF African Department division chief Mercedes Vera Martin noted authorities have reconciled historical data and improved transparency since misreporting was identified, supporting a waiver request.
- A proposed 36-month arrangement aims to support Senegal's "economic and financial reform program for the 2026–2029 period," though National Assembly President Ousmane Sonko could complicate implementation.
17 Articles
17 Articles
Turns into the financial saga of Dakar. The understanding thaws the funds blocked by the discovery of the debt hidden by the former president Macky Sall
Many Senegalese are overwhelmed by economic difficulties and expensive living, and the country is facing a social crisis.
IMF reaches agreement with Senegal on new $2.2 bn loan programme
After two years of fighting, Dakar and the IMF reached an agreement of $2.2 billion. The price to be paid: a restructuring of the debt that the government of Bassirou Diomaye Faye had long refused.
Senegal, IMF Reach Staff Agreement on $2.2 Billion Loan Program
Senegal’s eurobonds fell on Tuesday after the government said it will move forward with a “debt treatment” under the Group of 20’s Common Framework and agreed a new $2.2 billion financing program with the International Monetary Fund.
The International Monetary Fund (IMF) and Senegal announced on Tuesday 1 September an agreement on the principle of a loan of $2.2 billion in order to support Dakar and participate in the restoration of the country's financial health in the face of a dizzying debt of 132% of GDP.
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