Senegal and the International Monetary Fund (IMF) have recorded significant progress in negotiations over a new loan programme, as discussions continue to address the country’s mounting debt and fiscal challenges.
The two sides are expected to announce further developments at the conclusion of the IMF’s ongoing mission to the West African nation.
The IMF mission, which began on August 19, is holding discussions with Senegalese authorities on a possible replacement for the country’s $1.8 billion financing programme that was suspended in 2024.
The suspension followed the disclosure by the government of President Bassirou Diomaye Faye of previously unreported public debt, raising concerns about the country’s fiscal position and the accuracy of its financial records.
An IMF spokesperson said the discussions with Senegalese authorities had been constructive, noting that substantial progress had been made towards reaching an agreement on a new programme.
“Discussions with the authorities continue in a constructive way,” the spokesperson said.
The spokesperson added that any staff-level agreement reached between the IMF and Senegal would be announced through the Fund’s established procedures.
Senegal is expected to address the implications of the previously undisclosed debt as part of efforts to secure a new financing arrangement with the IMF.
The country will also need to agree on a credible strategy to stabilise its public finances and outline a sustainable approach to managing its debt burden.
The new programme is expected to play a crucial role in restoring investor confidence and providing Senegal with greater access to international financial support as it works to strengthen its economy.
Senegal last received financing from the IMF in late 2023. Since the suspension of the previous programme, the government has relied largely on regional financial markets and retail bond sales to bridge its funding gap.
The outcome of the ongoing discussions is therefore being closely watched, as a new agreement could provide the government with much-needed financial support while helping to chart a clearer path towards fiscal stability.
Senegal’s engagement with the IMF comes as the administration of President Faye continues efforts to confront the country’s financial challenges and rebuild confidence in its economic management following the debt disclosure.
