Senegal and IMF agree to $2.2 billion loan program amid debt restructuring

The International Monetary Fund (IMF) and Senegal have reached a staff-level agreement on a new three-year program under the Extended Credit Facility, valued at approximately $2.2 billion. The program aims to restore public finance sustainability and protect vulnerable households through 2029.

This new arrangement follows the discovery of previously unreported public debt, which an IMF investigation found was deliberately concealed for several years. While the country's fiscal deficit narrowed from 13.4 percent of GDP in 2024 to 6.4 percent in 2025 due to spending rationalization, total public-sector debt was estimated at 132 percent of GDP at the end of 2024.

Senegal intends to use the G20 Common Framework to address its external debt. The IMF noted that the framework is designed to improve coordination between debtors and creditors and does not necessarily mandate a reduction in the nominal value of the debt. The timeline for debt restructuring remains dependent on ongoing discussions between Senegalese authorities and their creditors.