IMF, Senegal reach $2.2bn lending deal

The ​International Monetary Fund and Senegal reached a staff-level agreement ‌for a three-year, $2.2 billion loan package that will require Senegal to seek debt treatment "to restore debt sustainability", the IMF said on ​Tuesday.

In a separate statement, Senegal's ministry of economy and ​finance said it had agreed to restructure debt ⁠under an "enhanced common framework", which it said would "provide a ​tailored response to the specific characteristics of Senegal's debt composition".

Senegal ​is grappling with a debt burden that reached 132% of gross domestic product at the end of 2024, according to IMF figures, ​after the government uncovered billions of dollars in misreported ​borrowing by the previous administration.

The IMF estimates misreported debt at more than $11 ‌billion ⁠based on end-2023 numbers. Some analysts put it closer to $13 billion - more than a quarter of the country's $40 billion economy.
The IMF froze a $1.8 billion lending programme after the discovery, ​and the ​two sides have ⁠been in contentious, drawn-out talks over a replacement.

Senegalese officials "have announced their intention to seek ​debt treatment in order to restore debt ​sustainability", the ⁠IMF statement said.

The deal announced on Tuesday requires Senegal to take "decisive corrective actions" in support of its request for a ⁠waiver ​related to the misreported debt, the ​IMF statement said.

It is subject to approval by the IMF management and ​board, it added.