Senegal's Debt Crisis: A Race Against Time

Senegal is in a hurry to conclude negotiations with the International Monetary Fund (IMF), according to the country's finance minister. Progress is being made in addressing a severe debt issue, with figures revealing that debt reached 132% of GDP by the end of 2024. This comes after the current government uncovered billions in hidden debts from the previous administration.

IMF Loan on Hold, But Progress Made

The IMF had suspended a $1.8 billion loan last year, but recent updates suggest significant progress toward a new agreement. The IMF is still investigating how the unreported debt went unnoticed.

Finance Minister Optimistic

In a recent discussion with lawmakers, Finance Minister Cheikh Diba stated that talks are proceeding smoothly. Key agreements have been reached on correcting data errors, though budget and debt issues remain under discussion. The IMF is reviewing Senegal's proposed solutions.

New IMF Mission Chief to Speed Up Process

A new IMF mission chief is expected to take over in January, which Diba hopes will accelerate the process. He emphasized the urgency of finalizing a program with the IMF, contrasting with Prime Minister Ousmane Sonko's stance. Sonko recently stated that the IMF wants Senegal to restructure its debt, a move he strongly opposes, calling it a "disgrace."

Senegal Continues Fundraising Efforts

Despite challenges, Senegal plans to keep raising funds using various tools, including Eurobonds, to manage its financial situation.