Senegal’s president personally handles IMF debt talks

Senegalese President Bassirou Diomaye Faye is personally leading negotiations with the International Monetary Fund to resolve a crisis caused by previously unreported liabilities that came to light in 2024, his office said Tuesday in statements on social media.

Faye met IMF Managing Director Kristalina Georgieva on the sidelines of the Africa Forward Summit in Nairobi. They discussed possible solutions for Senegal’s debt problems.

The IMF suspended a $1.8 billion program in 2024 after the initial misreporting was discovered.

Senegal is now seeking a new lending arrangement with the Fund to help manage a debt load that has exceeded 130 per cent of its gross domestic product.

Faye and Georgieva agreed to continue their discussions, according to the president’s office. The office said Faye is personally committed to the issue and is dedicating all his energy to it.

Prime Minister Ousmane Sonko said last year that the IMF wanted Senegal to restructure its debt. He called such a move “a disgrace” and said the government would resist it.

Faye and Georgieva also discussed how to handle economic shocks from the fighting in the Middle East, especially rising energy costs and their impact on Senegal’s economy, the president’s office said.

The IMF has lowered Senegal’s economic growth forecast for this year and expects a larger current account deficit than previously projected.

SOURCE: AFP