Senegal and IMF Reach $2.2 Billion Loan Agreement

The Government of Senegal and the International Monetary Fund reached a staff-level agreement for a $2.2 billion loan program spanning three years. The deal ends a two-year funding freeze that began after the 2024 discovery of billions of dollars in hidden loans, a revelation that had blocked Senegal's access to international capital markets.

The program focuses on restoring macroeconomic stability, reducing fiscal vulnerabilities, and protecting vulnerable households. To manage its debt, the Senegalese government plans to utilize an improved version of the G20 Common Framework. Senegal currently requires approximately $10.6 billion annually for financing and intends to raise 4 trillion CFA francs through regional markets this year.

As part of the agreement, the IMF has mandated a policy of zero tolerance regarding the accumulation of new external arrears. IMF Mission Chief Mercedes Vera-Martin emphasized this requirement to ensure the sustainability of the country's financial recovery.