Senegal's Debt Dilemma: IMF Deliberations Continue
The International Monetary Fund is working on a waiver for Senegal's $11 billion debt misreporting case, which has slowed progress on financial assistance. Ongoing discussions on corrective measures could lead to the IMF's approval and a new lending program. Senegal plans to rebase its economy to manage debt levels.
The International Monetary Fund (IMF) is navigating complex discussions on Senegal's significant debt misreporting case, which has escalated to over $11 billion. The case, initially revealed by Senegal's leaders in late 2024, has caused the IMF to stall its previous $1.9 billion lending program.
Edward Gemayel, the IMF's head of mission, indicated that it will take several weeks of continued dialogue with Senegalese authorities on corrective strategies before the case is submitted to the IMF Executive Board. A waiver is crucial; without it, Senegal risks having to repay funds and cannot secure a new lending initiative.
Senegal aims to rebuild its economic foundation by rebasing its economy to potentially lower its debt-to-GDP ratio. Meanwhile, Prime Minister Ousmane Sonko emphasized financing a new economic recovery plan primarily through domestic means, thus limiting further debt accumulation.
(With inputs from agencies.)
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