Senegal reaches staff-level $2.2 billion IMF deal after revealing over $11 billion in hidden debt
Senegal secured a temporary staff-level agreement with the IMF for a $2.2 billion, 3-year program following the disclosure of more than $11 billion in previously undisclosed borrowing. The deal requires full approval from the IMF Executive Board before implementation.
Senegal agreed on a staff-level loan package with the International Monetary Fund totaling $2.2 billion over three years. This arrangement follows months of negotiations after the country revealed it had misreported more than $11 billion in past borrowing. The disclosure pushed Senegal's public debt to approximately 132% of GDP by the end of 2024. Some estimates suggest hidden borrowing could total nearly $13 billion, representing over a quarter of the nation's roughly $40 billion economy. Because of these revelations, the IMF froze an earlier $1.8 billion program before this new agreement could be finalized. The current pact addresses debt sustainability but still needs approval from IMF management and its Executive Board. Senegal proposed an enhanced framework without disclosing specific measures. The IMF insisted on corrective actions linked to the misreporting, including stronger debt management, increased fiscal transparency, and adjustments to public spending plans. Authorities are also drafting a revised budget. International bond markets responded negatively, pushing Senegal's sovereign bonds to record lows where all prices traded below 50 cents on the dollar or euro. Senegal held more than $7 billion in outstanding international bonds as of the end of 2025, accounting for nearly 20% of its total debt, with export credits adding another roughly 10%. Implementation may encounter political obstacles involving former Prime Minister Ousmane Sonko.
