IMF seals $2.2bn financing deal with Senegal
AgenciesThe International Monetary Fund announced an agreement with Senegal on Tuesday for a new $2.2-billion loan program, after a prior deal was suspended following the discovery...
The International Monetary Fund (IMF) and Senegal have reached a $2.2 billion loan agreement to support the African nation's economic and financial reform program for 2026-2029. This new 36-month arrangement replaces a previously suspended $1.8 billion aid program, following the discovery of previously unreported debt during a prior IMF deal.
The IMF requires Senegal to take decisive corrective measures and receive financing assurances from the country's partners. Finance Minister Cheikh Diba expressed satisfaction with the agreement, stating that it paves the way for financing prospects. However, opposition speaker Ousmane Sonko has rejected any debt restructuring, calling it a "disgrace" for the country.
Senegal's fiscal deficit narrowed from 13.4% of GDP in 2024 to 6.4% of GDP in 2025, driven by spending rationalization. The country's overall public-sector debt stands at 132% of GDP.
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