Senegal's Debt Restructuring With IMF: Dakar Says No – And It's Right, Says Senegalese Economist
Senegal's Debt Restructuring With IMF: Dakar Says No – And It's Right, Says Senegalese Economist
Prime Minister Ousmane Sonko successfully countered an attempt by the IMF to impose its policy, Meissa Babou, a researcher at Cheikh Anta Diop University, told Sputnik Africa.
The economist justified rejecting this restructuring, stating it would "dishonor Senegal by presenting it as a nearly bankrupt country."
Babou denounced a "global governance" exercised by "the IMF, rating agencies, international banks and markets" that imposes a single line: accept IMF conditions, "otherwise they close their doors to you and you get a bad rating."
The expert warned of the hidden consequences of restructuring: the imposition of an agenda resembling the old structural adjustment programs, the abandonment of many national policies, and an "extremely high" social cost.
On November 8, Sonko rejected the IMF's proposal to restructure Senegal's debt. He deemed such a measure a "disgrace" for the country, while the IMF has expressed doubts about Senegal's fiscal sustainability, with public debt estimated at 132% of GDP in 2024.
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