Senegal reaches $2.2 billion IMF deal tied to debt restructuring

  • Senegal reached a conditional staff-level agreement for a $2.2 billion, three-year IMF loan package linked to debt treatment.
  • Government debt excluding state-company borrowing stood at 23.67 trillion CFA francs, or 119% of GDP, at end-2024.
  • CFA franc-denominated debt is expected to remain outside the restructuring, while IMF Board approval and creditor assurances are pending.

Senegal has reached a staff-level agreement with the International Monetary Fund (IMF) for a conditional $2.2 billion, three-year loan package tied to debt treatment under the G20 Common Framework. The deal follows a hidden-debt scandal that led the IMF to freeze a previous $1.8 billion support program and pushed Senegal's public liabilities to about 130% of GDP or more. Senegal has signalled that CFA franc-denominated debt will be excluded from the restructuring, while the IMF's Executive Board and external financing assurances remain necessary before disbursements can begin. IMF Managing Director Kristalina Georgieva said rising advanced-economy debt and bond yields threaten debt-reduction progress in emerging and low-income countries, making a swift Senegal workout important for restoring confidence in the restructuring process.

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