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🇳🇬 Nigeria /Economy & Trade

IMF agrees to $2.2 billion loan programme for Senegal

From The Punch · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources New plan
  • The IMF announced a staff-level agreement with Senegal on a new $2.2 billion, 36-month loan programme after suspending an earlier deal over previously unreported debt.
  • The programme will support Senegal’s 2026-2029 economic and financial reforms, but requires corrective measures and approval from the IMF executive board.
  • Senegal’s public-sector debt reached an estimated 132% of GDP at the end of 2024, although its fiscal deficit narrowed in 2025.

The International Monetary Fund has reached a new $2.2 billion loan agreement with Senegal, nearly two years after suspending an earlier programme when previously unreported debt came to light.

The 36-month arrangement would support the government’s economic and financial reform programme for 2026 to 2029. The staff-level agreement still requires approval from the IMF executive board. The fund also said Senegal must take “decisive corrective measures” to support its request for a waiver related to the misreporting of financial data.

Pleased

— Cheikh DibaSenegal’s finance minister described his reaction to the technical agreement.

The IMF suspended a $1.8 billion programme agreed in 2023 after President Bassirou Diomaye Faye’s government accused the administration of former president Macky Sall of concealing the full extent of the country’s budget problems. Following several IMF visits to assess Senegal’s finances, negotiations on a replacement programme began in mid-October.

Finance Minister Cheikh Diba said he was “pleased” that Senegal and the IMF had reached a technical agreement that opened the way to financing prospects. Mercedes Vera Martin, a division chief in the IMF’s African Department, said the authorities had taken steps to improve transparency since the misreporting was identified. Those efforts included several audits and the reconciliation of historical data with the findings on debt.

Reached a technical agreement that paves the way for financing prospects.

— Cheikh DibaThe finance minister characterized the outcome of negotiations with the IMF.

The IMF said it would also require financing assurances from Senegal’s partners. Senegal has continued to fund itself largely through regional financial markets, but borrowing there costs more than loans from international financial institutions, development banks or governments.

Public-sector debt stood at an estimated 132% of GDP at the end of 2024, making Senegal one of sub-Saharan Africa’s most indebted countries. The IMF said the fiscal deficit nevertheless fell from 13.4% of GDP in 2024 to 6.4% in 2025, mainly because of spending rationalisation. The new financing effort also follows a political dispute between Faye and his former prime minister, Ousmane Sonko, over several issues including the IMF programme.

Since the misreporting was identified, the authorities have taken efforts to improve the transparency.

— Mercedes Vera MartinAn IMF African Department official described Senegal’s response to the debt disclosure.
About this summary

Originally published by The Punch in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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