Senegal's 2025 budget projects a 7% GDP deficit, a decrease from the 10% revealed in a 2023 audit that stalled its IMF program. This audit, commissioned by newly elected President Bassirou Diomaye Faye, showed a significantly larger deficit (over 10% versus the previously reported 5%), leading to higher bond yields and credit rating downgrades.
The IMF program is not expected to resume before June 2025. The 2025 budget prioritizes prudent debt management, utilizing traditional donors and aiming to develop domestic financing, including a potential $2.41 billion diaspora bond market. A final audit report, expected in mid-December, will further refine the debt figures.
To ensure debt sustainability and improve debt servicing, particularly in 2026 and 2027, Senegal plans to negotiate debt repayment terms with investors.