https://en.sputniknews.africa/20241218/senegal-pursues-debt-extension-amid-revised-fiscal-challenges-1069780449.html
Senegal Pursues Debt Extension Amid Revised Fiscal Challenges
Senegal Pursues Debt Extension Amid Revised Fiscal Challenges
Sputnik Africa
In June 2023, the International Monetary Fund (IMF) approved a $1.8 billion support package for Senegal, including a $1.51 billion credit facility and a $324... 18.12.2024, Sputnik Africa
2024-12-18T17:47+0100
2024-12-18T17:47+0100
2024-12-18T17:47+0100
sub-saharan africa
macky sall
senegal
economy
international monetary fund (imf)
west africa
debt restructuring
debt
diaspora
finance
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Senegal is set to implement a liability management plan aimed at extending debt maturities after a state audit revealed the country’s public finances were in worse shape than previously disclosed.The draft budget documents detail plans for a “more appropriate repayment profile favoring re-profiling with extended maturities,” while maintaining that the government will honor its obligations to investors. The finance ministry emphasized that Senegal has no intention of renegotiating or restructuring its debt.The audit showed Senegal’s debt-to-GDP ratio exceeded 80% by the end of 2022, significantly higher than the earlier reported 73%. Additionally, the budget deficit was found to represent over 10% of GDP, almost double the 5.5% stated under the administration of former President Macky Sall. This discrepancy prompted the IMF to freeze $1.8 billion in loans earlier this year. The review, currently under assessment by Senegal’s court of auditors, is expected to result in upward revisions to outstanding debt and debt service projections for 2024-2025.To navigate these challenges, Senegal has proposed issuing 1.5 trillion CFA francs in diaspora bonds to reduce reliance on external funding. The government also plans to revise its mining and tax codes to optimize state revenues, particularly from oil and gas sectors.Nevertheless, the economic outlook is positive, with growth projected at 8.8% in 2025, driven by new oil production and gas exports from the $4.8 billion BP-operated Grand Tortue Ahmeyim field. Meanwhile, inflation is expected to stabilize at an average of 1.9% in 2024, as Senegal positions itself for fiscal recovery and sustainable growth.
https://en.sputniknews.africa/20241215/senegals-2025-budget-aims-for-fiscal-recovery-after-imf-stalemate-1069719401.html
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macky sall, senegal, economy, international monetary fund (imf), west africa, debt restructuring, debt, diaspora, finance, economic growth
macky sall, senegal, economy, international monetary fund (imf), west africa, debt restructuring, debt, diaspora, finance, economic growth
Senegal Pursues Debt Extension Amid Revised Fiscal Challenges
Christina Glazkova
Writer / Editor
In June 2023, the International Monetary Fund (IMF) approved a $1.8 billion support package for Senegal, including a $1.51 billion credit facility and a $324 million sustainability facility. This package aimed to tackle macroeconomic imbalances, reduce debt, enhance governance, support inclusive growth, and aid in climate change efforts.
Senegal
is set to implement a liability management plan aimed at extending debt maturities after a state audit revealed the country’s public finances were in worse shape than previously disclosed.
The draft budget documents detail plans for a “more appropriate repayment profile favoring re-profiling with extended maturities,” while maintaining that the government will honor its obligations to investors. The finance ministry emphasized that Senegal has no intention of renegotiating or restructuring its debt.
The audit showed Senegal’s debt-to-GDP ratio exceeded
80% by the end of 2022, significantly higher than the earlier reported 73%. Additionally, the budget deficit was found to represent over 10% of GDP, almost double the 5.5% stated under the administration of former President
Macky Sall. This discrepancy prompted the
IMF to freeze $1.8 billion in loans earlier this year. The review, currently under assessment by Senegal’s court of auditors, is expected to result in upward revisions to outstanding debt and debt service projections for 2024-2025.
To navigate these challenges, Senegal has proposed issuing 1.5 trillion CFA francs in
diaspora bonds to reduce reliance on external funding. The government also plans to revise its mining and tax codes to optimize state revenues, particularly from oil and gas sectors.
Nevertheless, the
economic outlook is positive, with growth projected at 8.8% in 2025, driven by new oil production and gas exports from the $4.8 billion BP-operated Grand Tortue Ahmeyim field. Meanwhile, inflation is expected to stabilize at an average of 1.9% in 2024, as Senegal positions itself for fiscal recovery and sustainable growth.
