Senegal Seeks IMF Approval to Manage $44 Billion Debt
President Bassirou Diomaye Faye is negotiating with the IMF and major creditors to ensure debt sustainability and unlock critical financing for Senegal.
The government of Senegal is working to convince the International Monetary Fund that its national debt is sustainable to unlock essential financing. The country's debt-to-GDP ratio climbed to approximately 130% in 2024 after the discovery of misreported debts. By the end of 2025, central government debt reached 25.2 trillion CFA francs, or $44 billion, with arrears totaling 3.42 billion USD as of March 2025.
President Bassirou Diomaye Faye has set a goal to achieve debt treatment within months. While officials have avoided using the term restructuring due to political sensitivities, France and China are expected to lead negotiations as the largest bilateral creditors. Prime Minister Ahmadou Al Aminou Lo warned that existing arrears are weighing on economic activity, while National Assembly President Ousmane Sonko stated that a debt default would be a "disgrace".
Several factors complicate the negotiations. Senegal has decided to exclude debt denominated in CFA francs from the rework. Additionally, the IMF has raised concerns over the opacity of $1.26 billion in total return swaps, which the lender classifies as external debt.
