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The International Monetary Fund (IMF) reached a staff-level agreement with Senegal on Tuesday for a new $2.2-billion loan programme, replacing a prior deal suspended over hidden government debt.
The 36-month arrangement aims to stabilise the West African nation’s finances from 2026 to 2029 following allegations by President Bassirou Diomaye Faye’s administration that former president Macky Sall’s government concealed the true scale of public borrowing.
The IMF suspended its earlier $1.8-billion package in response, requiring the new leadership to conduct thorough financial audits and implement strict corrective measures before approving fresh funds.
To secure executive board approval, Senegal must provide financing assurances from international partners and address its massive debt, which reached 132 per cent of GDP at the end of 2024.
Despite narrowing its fiscal deficit to 6.4 per cent in 2025, Senegal faces high borrowing costs and recent credit rating downgrades from agencies like Moody’s.
IMF officials emphasised that while the government has improved fiscal transparency, Senegal must now execute a comprehensive debt treatment plan to restore long-term stability.
Political friction in Dakar threatens to complicate the reform agenda as parliamentary leaders question the deal’s terms.
National Assembly Speaker Ousmane Sonko demanded full transparency regarding the proposed debt treatment, insisting that parliament debate any key financial commitments.
Despite these political and economic hurdles, Senegal’s economy grew by 6.7 per cent in 2025, driven largely by its first full year of offshore oil production.
