The International Monetary Fund (IMF) has reaffirmed Senegal’s sovereign right to determine how it manages its public debt, following concerns over the country’s rising fiscal burden and potential restructuring options.
Speaking at a press briefing in Washington, IMF spokesperson Julie Kozack said that while the Fund continues to engage with Senegal on maintaining fiscal stability, “decisions regarding debt management remain the sovereign prerogative of the Senegalese authorities.”
As reported by Reuters, Senegal’s debt-to-GDP ratio has climbed above 75%, raising questions among investors about sustainability amid sluggish revenue growth and increased social spending. However, the IMF noted that ongoing reforms under President Bassirou Diomaye Faye’s administration are aimed at restoring fiscal balance and stimulating economic growth.
The IMF emphasized that its support to Senegal will continue through the Policy Coordination Instrument (PCI) and Extended Credit Facility (ECF), which provide technical assistance and low-interest financing to help the West African nation navigate economic challenges.
According to Bloomberg, Senegal remains one of West Africa’s most promising economies, buoyed by anticipated revenues from upcoming oil and gas production, which could ease pressure on public finances starting in 2025.
