Senegal Deliberates New IMF Deal Amid Debt Crisis

Senegal is actively engaging with the International Monetary Fund (IMF) in crafting a new financial agreement, as stated by an adviser to President Bassirou Diomaye Faye. Amid past challenges, including a suspended program, Senegal remains committed to fulfilling its financial obligations.

The debt, which surged to 132% of GDP by the end of 2024, has been a source of concern. The growth in debt was exacerbated by previous misreported borrowing, leading to a freeze on a $1.8 billion IMF program. Talks continue, emphasizing Senegal's strong stance on safeguarding national interests while meeting external financial obligations.

Despite IMF's proposal for debt restructuring, Senegal's officials, including Aminata Toure, express reservations, citing potential long-term impacts. The government also addresses student protests over financial aid, emphasizing no current arrears. Senegal's dialogue with the IMF highlights its intention to manage priorities efficiently without succumbing to external pressures.