Senegal will not restructure its debt but will instead seek to reprofile its existing obligations, Prime Minister Ahmadou Al Aminou Lo told parliament on Tuesday.
Lo said debt reprofiling would involve extending repayment maturities and renegotiating interest rates, rather than reducing or cancelling existing debt.
The announcement follows a recent staff-level agreement between Senegal and the International Monetary Fund (IMF) for a $2.2 billion, three year lending programme. The IMF’s previous programme was suspended in 2024 after the discovery of previously unreported government debt.
Senegal’s Ministry of Economy and Finance had said the new agreement included an “enhanced common framework” aimed at restoring debt sustainability, without initially providing details of the measures involved.
Lo also told lawmakers that the government was renegotiating about 30 mining agreements, as the administration seeks to strengthen public finances and increase state revenues.
The prime minister was appointed in May, three days after President Bassirou Diomaye Faye dismissed the government led by Ousmane Sonko, who had opposed debt restructuring and is now speaker of parliament.
Senegal’s decision to reprofile rather than restructure its debt is expected to remain a key issue as the government works with the IMF to restore fiscal stability while managing its debt burden.
Leave a comment