The International Monetary Fund (IMF) says it has held positive discussions with Senegal this week over a potential new loan programme, though it stressed that more time and analysis are needed to design a sustainable financial plan for the country.
IMF Africa Director Abebe Aemro Selassie said on Thursday that discussions were ongoing, but cautioned that any agreement must be credible, financeable, and avoid excessive austerity measures on citizens.
“We wanted to take time and allow the government time to come up with a program strategy that’s going to be credible, financeable, and avoid too much austerity on the people of Senegal,” Selassie said during a press briefing.
Senegal has come under increased scrutiny during the IMF–World Bank Spring Meetings in Washington following the revelation of billions of dollars in previously undisclosed debt, now estimated at about $13 billion. The discovery led the IMF to suspend its $1.8 billion loan programme in 2024.
The West African nation has since been negotiating a new financing arrangement with the global lender as it seeks to stabilise public finances and restore investor confidence.
According to Selassie, the process remains at an early stage, with the Senegalese government expected to develop a comprehensive reform strategy before any new programme can be finalised.
“These discussions require reflection, quite a lot of deliberation, and first and foremost, are for the government to develop,” he added.
The IMF says it remains engaged with Senegal as it works through the implications of the debt overhang and explores options for renewed financial support.
