Senegal is facing growing pressure to address a debt burden of about $44 billion as the government works to convince international lenders that its finances can return to a sustainable path.
Central government debt reached 25.2 trillion CFA francs, equivalent to about $44 billion, at the end of 2025. The country is also carrying billions of dollars in arrears, while its projected budget deficit for 2026 has risen to 7.6% of gross domestic product amid higher debt costs, increased energy subsidies and weaker revenues.
France and China are among Senegal’s largest bilateral creditors, while multilateral institutions account for a significant share of its external debt. Commercial lenders and bondholders could also face pressure if debt treatment requires losses or changes to repayment terms.
Senegal has indicated that CFA franc-denominated debt will remain outside the restructuring process. That debt has grown as the government increasingly relied on regional markets after international financing became more difficult to access.
The country is also dealing with total return swaps worth about $1.26 billion, adding another complication to negotiations because such instruments remain relatively untested in sovereign debt restructurings.
The outcome of Senegal’s debt negotiations could affect government spending, investor confidence and the country’s ability to finance economic development.
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