The International Monetary Fund said it had discussed with Senegal various options to address “significant debt vulnerabilities,” stressing that the decision on whether to restructure its debt “rests solely with the government.”
The Fund had frozen a $1.8 billion financial support package last year after the new government revealed previously hidden debts now estimated at more than $11 billion.
Prime Minister Ousmane Sonko stated over the weekend that IMF officials were pushing for a debt restructuring — something his government would not accept — leading to a sharp decline in the country’s international bond prices on Monday.
An IMF spokesperson clarified that the discussions about Senegal’s policy options during a technical mission to Dakar last week were part of the Fund’s role in providing “analysis and technical expertise for the government’s consideration.”
“The choice of debt operations, including whether to pursue a restructuring, remains a sovereign decision,” the spokesperson added.
In August, Prime Minister Sonko unveiled a new economic recovery plan, pledging to finance 90% of it from domestic resources and avoid taking on new debt.
However, the government still faces a fragile financial situation.
Countries such as Zambia, Ghana, and Ethiopia have been forced to restructure their debts since 2020, but the lengthy and painful nature of those processes has made restructuring an unpopular option among other heavily indebted African governments.
Kenya, facing similar pressure, opted for costly measures such as raising taxes, sparking deadly protests last year.