By Enyichukwu Enemanna
Senegal has dismissed the call by the International Monetary Fund (IMF) for the West African nation to restructure its debt, with the Prime Minister, Ousmane Sonko saying such move would be “a disgrace.”
“What the IMF is proposing is a restructuring of this abysmal debt that Macky Sall’s party has burdened us with,” Sonko said at a rally of the governing PASTEF party in the capital Dakar on Saturday.
“What we told our partners is that we don’t want a restructuring because it would be a disgrace for Senegal,” he added, reinforcing the position of President Bassirou Diomaye Faye who blamed the hidden debt crisis on his predecessor Macky Sall.
“It would imply that Senegal is a bad student who borrowed money with the intent to steal. We told them that this country is a country of dignity, a country of pride, that the Senegalese people will rise to the occasion, and that the Senegalese people will take responsibility,” Sonko stated.
It was unclear whether he was referring to a restructuring of domestic or international debt, or both.
The IMF, which completed a mission to Senegal on Thursday without agreeing a new lending programme, froze Senegal’s previous $1.8 billion programme last year after its then-new leaders discovered hidden debts which have since risen to over $11 billion.
The IMF estimates that at the end of last year total public sector debt, including state-owned enterprises, stood at 132% of GDP, including 4% in domestic expenditure arrears.
Mission Chief Edward Gemayel told journalists that talks would continue in the coming weeks and that Senegal was serious about getting its debts in check.
Sonko in August unveiled a new economic recovery plan for Senegal, pledging to finance 90% of the initiative through domestic resources and avoid additional debt.
