By: Chidozie Nwali
The International Monetary Fund said they’re ready to kick start program discussions with Senegal following extensive public debt reevaluations done by Senegalese authorities to get accurate public debt figures which were previously underreported. IMF said in a statement on Thursday.
These miscalculations in public debt had earlier forced the IMF to suspend its $1.8 billion credit facility program pending a review of the debt situation.
Senegalese government has now completed and shared with IMF its public debt audit and assessment as ordered by Senegal’s court of auditors in February; International auditors were also part of the public debt auditing process.
“Based on this comprehensive work that we’ve done jointly with the Senegalese authorities, and all the information available so far, we are ready to move to the next phase of our engagement, which of course will be program discussions.” Julie kozack IMF spokesperson said.
However, there was no mention of a funded program, but analysts have speculated that any program discussions with the IMF would be a funded program as Senegal currently needs funding.
Senegal’s previous administration under President Macky Sall underreported the country’s public debt between 2019-2023.
The total outstanding debt at the end of 2023 was found to be approximately 99.7% of Gross Domestic Product (GDP), compared to the previously reported figure of around 74.4% of GDP. This implied billions of dollars in “hidden borrowing.
The reviewed budget deficit for 2023 was determined to be 12.3% of GDP, significantly higher than the 4.9% reported by the previous government.
Because of these debt miscalculations International rating agencies downgraded Senegal’s sovereign credit rating making it very hard for the country to access international capital markets.
However, the discrepancies were brought to light by an audit ordered by the new government, led by President Bassirou Diomaye Faye, who took office in 2024. The findings were confirmed by Senegal’s Court of Auditors in February 2025.
The new government has pledged to enhance transparency and implement fiscal consolidation measures, which may include raising taxes and cutting public spending to address the shortfall. ####
IMF: ‘We are now ready for program discussions with Senegal’, amid debt recalculations
By: Chidozie Nwali
The International Monetary Fund said they’re ready to kick start program discussions with Senegal following extensive public debt reevaluations done by Senegalese authorities to get accurate public debt figures which were previously underreported. IMF said in a statement on Thursday.
These miscalculations in public debt had earlier forced the IMF to suspend its $1.8 billion credit facility program pending a review of the debt situation.
Senegalese government has now completed and shared with IMF its public debt audit and assessment as ordered by Senegal’s court of auditors in February; International auditors were also part of the public debt auditing process.
“Based on this comprehensive work that we’ve done jointly with the Senegalese authorities, and all the information available so far, we are ready to move to the next phase of our engagement, which of course will be program discussions.” Julie kozack IMF spokesperson said.
However, there was no mention of a funded program, but analysts have speculated that any program discussions with the IMF would be a funded program as Senegal currently needs funding.
Senegal’s previous administration under President Macky Sall underreported the country’s public debt between 2019-2023.
The total outstanding debt at the end of 2023 was found to be approximately 99.7% of Gross Domestic Product (GDP), compared to the previously reported figure of around 74.4% of GDP. This implied billions of dollars in “hidden borrowing.
The reviewed budget deficit for 2023 was determined to be 12.3% of GDP, significantly higher than the 4.9% reported by the previous government.
Because of these debt miscalculations International rating agencies downgraded Senegal’s sovereign credit rating making it very hard for the country to access international capital markets.
However, the discrepancies were brought to light by an audit ordered by the new government, led by President Bassirou Diomaye Faye, who took office in 2024. The findings were confirmed by Senegal’s Court of Auditors in February 2025.
The new government has pledged to enhance transparency and implement fiscal consolidation measures, which may include raising taxes and cutting public spending to address the shortfall. ####
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