Senegal has made early repayments totaling $100.94 million on two external debt obligations ahead of an upcoming mission from the International Monetary Fund (IMF). The payments included €53.75 million ($62.14 million) on a bond due in 2037 and $38.8 million on another bond maturing in 2031. Both repayments were completed approximately ten days before their scheduled due dates under the direction of Finance and Economy Minister Cheikh Diba.
The move comes as Senegal faces significant fiscal pressures following the revelation in 2024 of previously undisclosed public borrowing. According to the IMF, the country’s public debt has climbed to nearly 132% of gross domestic product (GDP). Senegal’s $1.8 billion Extended Credit Facility arrangement with the IMF has remained suspended since October 2024, while debt servicing obligations for 2026 are estimated at approximately $9.7 billion, representing a record burden for the country.
Senegal’s credit profile has also weakened in recent years. International rating agencies have downgraded the country’s sovereign ratings, reflecting concerns about debt sustainability and fiscal management. Meanwhile, borrowing costs have increased substantially, with recent regional bond issuances attracting yields ranging from 7.4% to nearly 8%, indicating growing investor concerns about financial risks.
An IMF mission is scheduled to arrive in Dakar during the week beginning June 15 to hold technical discussions with Senegalese authorities. The talks are expected to focus on the country’s macroeconomic outlook, financing requirements, reform priorities, and strategies to address debt vulnerabilities. The IMF has not yet indicated when a new agreement could be reached.
Alongside economic challenges, political dynamics are influencing the country’s fiscal outlook. The ruling PASTEF-Les Patriotes party recently reaffirmed former Prime Minister Ousmane Sonko as its leader during its first congress since its creation. With a dominant majority in parliament, the party holds significant influence over budget legislation and any future debt-related measures. Political leaders have emphasized the importance of maintaining stability to facilitate negotiations with international financial institutions and support economic recovery efforts.
