The International Monetary Fund says its mission to Senegal has ended without a new lending programme but an official said the body is planning to finalize one soon.
Mission Chief Edward Gemayel told journalists that talks would continue in the coming weeks and that Senegal was serious about getting its debts in check after discovering billions in debt that the previous administration had not reported to the IMF.
“We still need some more discussions. Hopefully, in the coming weeks we can reach a conclusion.”
The Fund froze Senegal’s previous $1.8 billion lending programme last year after the then-new leaders revealed the hidden debts, which have since ballooned to more than $11 billion. The Fund estimates that at the end of last year, total public sector debt stood at 132 percent of GDP, including 4 percent in domestic expenditure arrears.
The country is now seeking a fresh lending programme, but also needs the IMF board to approve a crucial debt misreporting waiver.
Gemayel said the Fund was working on the waiver in tandem with the new lending programme, though the two may not go before the board at the same time.
Senegal’s budget targets the 2026 deficit at 5.4 percent of GDP, a further reduction from 7.8 percent this year and 13.4 percent of GDP in 2024. “While the ambition is laudable,” he said later in a statement, “the very high tax yield assumed from the announced measures poses a significant risk, underscoring the need for more conservative projections.”
