The International Monetary Fund has engaged in discussions with Senegal regarding strategies to tackle the West African nation’s significant debt problems. Following the disclosure of debts exceeding $11 billion by a new government last year, the IMF had suspended a $1.8 billion support package.
Prime Minister Ousmane Sonko has voiced his disapproval of the IMF’s push for debt restructuring, which has impacted Senegal’s international bonds. Current statistics show a continuing decline in bond performance, reflecting investor concerns.
Without IMF support, Senegal faces a challenging financial landscape. As other African nations have experienced prolonged debt restructuring processes, Senegal aims to avoid this route by proposing a new economic recovery plan and seeking domestic financial resolutions.
(With inputs from agencies.)