Senegal remains in financial uncertainty as the International Monetary Fund, IMF, says it will require several more weeks before presenting the country’s debt misreporting case to its Executive Board.
The delay comes after extensive negotiations between IMF officials and Senegalese authorities on corrective measures to address the discrepancy
The issue originates from a startling disclosure in September 2024: Senegal’s concealed debts had surged from $1.9 billion to in excess of $11 billion, prompting the suspension of a previously sanctioned $1.8 billion IMF loan programme.
IMF Mission Chief, Edward Gemayel said that, “Discussions on several corrective measures will continue over the next few weeks before the misreporting case can be presented.”
He affirmed the IMF’s readiness to support Senegal with a robust reform strategy once the figures are verified.
In the meantime, Prime Minister Ousmane Sonko has launched an expansive recovery blueprint designed to stabilise the economy via domestic funding. The scheme pledges to finance 90% of the initiative through internal means curbing future dependence on foreign borrowing.
Senegal is also undertaking a rebasing of its economy for the first time since 2018, aiming to adjust its debt-to-GDP ratio to more sustainable levels.
These developments represent a pivotal shift for Senegal, as it endeavours to rebuild investor trust and revive stalled international assistance.
AFRICA NEWS