IMF Extends Talks with Senegal over $11B Debt Misreporting

The International Monetary Fund (IMF) continues discussions with Senegal regarding the misreporting of the country's debt, which has been revised to nearly 120% of GDP following the discovery of undisclosed liabilities. This revelation led to the suspension of Senegal's $1.9 billion lending program in October 2024. IMF mission chief Edward Gemayel emphasized the need for several more weeks of dialogue on corrective measures before presenting the case to the IMF Executive Board for a crucial waiver that would enable new funding. Despite these challenges, Senegal's economy shows resilience, with notable growth driven by oil and gas production, although structural issues remain in other sectors. The Senegalese government has expressed its intention to seek a new IMF-supported reform program focusing on fiscal transparency, debt management, and economic revitalization, aiming to stabilize and recover through domestic financing and economic rebasing. Market analysts view the ongoing talks and the government's reform commitments as positive signs that IMF support is likely by 2026.