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Senegal’s Debt Servicing Projections Rise Sharply in Revised Budget Document

Senegal’s future debt servicing obligations are expected to rise significantly, with government projections showing an increase of about 3.2 trillion CFA francs (approximately $5.8 billion) over the next three years, according to a revised budget document cited by Reuters.

The updated figures show total payments on principal and interest climbing to 5.49 trillion CFA francs in 2026, up more than 11 percent from earlier forecasts. The projections then show payments of 4.41 trillion CFA francs in 2027 and 4.97 trillion CFA francs in 2028, reflecting a sharp upward revision in the country’s debt management outlook.

The adjustments follow the recent discovery of previously unreported debts under the former administration, which prompted the International Monetary Fund (IMF) to suspend its $1.8 billion lending program to Senegal. The country’s debt-to-GDP ratio was estimated at about 132 percent at the end of 2024, including arrears and liabilities from state-owned enterprises.

Financial analysts note that the rising debt servicing burden could strain fiscal space and complicate Senegal’s refinancing plans. The IMF is expected to review the country’s debt sustainability and may recommend restructuring or reprofiling if the current obligations are deemed unsustainable.

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