The International Monetary Fund has reported encouraging progress in its discussions with Senegal over a possible new loan programme. However, the Fund says more time and detailed analysis are required to address the country’s substantial debt burden.
Senegal is drawing significant attention at the IMF and World Bank Spring Meetings in Washington, following the recent revelation of previously undisclosed debts now estimated at about 13 billion dollars.
The development led the IMF to suspend a 1.8 billion dollar support programme in 2024. Talks on a new financing arrangement have been ongoing.
IMF Africa Director, Abebe Selassie, says the Fund is taking a measured approach to allow Senegalese authorities to develop a credible and sustainable economic strategy.
He emphasised that any programme must be properly financed while avoiding excessive austerity measures that could negatively impact citizens.
Selassie noted that the process will require careful reflection and extensive consultations, with the responsibility resting primarily on the Senegalese government to design a viable reform plan.