Senegal to Negotiate a Debt Reprofiling in Talks With Creditors
Senegal will seek to negotiate a debt reprofiling instead of a restructuring in talks with creditors as the West African nation moves to make its loans sustainable to qualify for an International Monetary Fund program.
S&P Global Ratings has downgraded Senegal's long-term foreign currency rating, citing a high likelihood of the country defaulting on its debt following an agreement reached with the International Monetary Fund for a $2.2 billion loan. This downgrade pushes the West African nation further into junk territory, highlighting its vulnerability given the government's revelation of undisclosed debt from a previous administration.
Disagreements over resolving the debt crisis have sparked a political crisis, leading to the dissolution of an alliance between prominent government figures that came to power in 2024. President Bassirou Diomaye Faye expressed openness to debt restructuring, a stance opposed by his previous Prime Minister Ousmane Sonko. The rift culminated in Faye dismissing Sonko and dissolving his government before appointing new ministers.
Sonko, now the influential parliamentary speaker, has recently softened his opposition to debt restructuring.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- S&P downgrades Senegal on debt fears semafor.com
