IMF
The International Monetary Fund and Senegal have reached a staff-level agreement on a three-year, $2.2 billion lending program as the country confronts a severe debt burden. The deal requires Senegal to seek debt restructuring aimed at restoring debt sustainability. The agreement follows the discovery that Senegal’s debt burden had reached 132% of GDP by the end of 2024, after officials uncovered misreported borrowing under the previous administration. The IMF estimates the undisclosed debt at more than $11 billion, but some analysts put the figure closer to $13 billion. The revelations led the IMF to freeze an earlier $1.8 billion program. The new deal requires Senegal to take decisive corrective steps to support its request for a waiver related to the misreporting, and still needs approval from IMF management and its board.