"Senegal is at loggerheads with the International Monetary Fund (IMF) over a bailout it urgently needs to plug a gaping hole in its public finances. While the IMF wants the West African nation to undertake a painful restructuring before it will agree to a bailout, Senegal, which was recently downgraded to deep within junk bond status, is resisting this plan."
"In its latest rating review, S&P estimated Senegal's public debt had risen to $42.1bn, or 119 percent of gross domestic product (GDP), at the end of 2024, making it one of the most indebted countries in Africa. That figure excluded about 9 percent of GDP in debt owed by state-owned enterprises (SOEs). Since 2008, Senegal has leaned heavily on borrowing to fund infrastructure projects."
Senegal faces a standoff with the International Monetary Fund as it seeks a bailout to address a major shortfall in public finances. The IMF conditions a new program on a painful debt restructuring, but the government resists that requirement. Credit rating agency S&P downgraded Senegal to CCC+ and estimated public debt at $42.1bn, or 119% of GDP at end-2024, excluding about 9% of GDP owed by state-owned enterprises. The IMF suspended a $1.8bn package after discovery of $7bn in previously concealed borrowing. Heavy infrastructure borrowing since 2008, COVID-19 revenue losses and higher global interest rates pushed fiscal pressures higher. Negotiations continue without agreement.
Read at www.aljazeera.com
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