The International Monetary Fund (IMF) said on Tuesday it will take weeks before it can move forward with a waiver for Senegal’s debt misreporting case, as discussions on corrective measures with the West African country are still ongoing.
The IMF suspended Senegal’s previous $1.9 billion lending programme after the country’s then-new leaders announced in September 2024 that they had uncovered debt misreporting, which has since grown to more than $11 billion.
“Discussions on several corrective measures will continue over the next few weeks before the misreporting case can be presented to the IMF Executive Board,” the Fund’s head of mission, Edward Gemayel, said in a statement following a staff mission to Senegal.
Senegalese leaders had expected the IMF to move forward on a waiver months ago. Without board approval of the waiver, the government could be forced to repay. A waiver is also essential for the country to secure a new lending programme.
“The IMF stands ready to assist Senegal in designing an ambitious reform agenda,” Gemayel said.
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The statement also noted that Senegalese authorities informed the Fund of their intention to seek a new IMF programme.
Last month, the IMF said it required more data to complete its assessment of Senegal’s debt situation and needed agreement on key remedial measures. The revelation of hidden debts has been a setback for the IMF, which was monitoring Senegal’s finances at the time due to the active lending programme.
Senegal also plans to rebase its economy for the first time since 2018, which some investors believe could reduce its debt-to-GDP ratio to more manageable levels.
Earlier this month, Prime Minister Ousmane Sonko unveiled a new economic recovery plan, pledging to finance 90 per cent of the initiative through domestic resources and avoid taking on additional debt.
