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Senegal’s MPs push back on the $2.2 billion IMF deal.
Senegalese lawmakers have challenged Prime Minister Ahmadou Al Aminou Lo over the $2.2 billion loan programme his government agreed with the International Monetary Fund.
The deal, reached on 1 September, is a three-year Extended Credit Facility worth about 1.54 billion in IMF special drawing rights. Before any money moves, the Fund's board has to sign off and issue a waiver over a misreporting case.
That case is the heart of the crisis. An audit by Senegal's Court of Auditors restated debt at the end of 2023 from 74.4 per cent of output to 99.7 per cent. By the end of 2024 it stood at 118.8 per cent, and estimates that include off-balance-sheet commitments put it above 130 per cent.
Finance Minister Cheikh Diba has kept CFA franc-denominated debt out of any restructuring, protecting roughly CFAF 4,307 billion falling due in 2026. Only external creditors – bilateral lenders, commercial loans and Eurobond holders – face losses.
Moody's cut Senegal to Caa2 with a negative outlook on 28 August.
The row over how to handle the debt already cost one government: President Bassirou Diomaye Faye backed restructuring, his then prime minister Ousmane Sonko opposed it, and Faye dismissed him in May and appointed Lo, a career central banker.
This story was put together by K N N from material first published by Africanews.
That was a Kibra News Network report, read by an A I voice.
Senegalese lawmakers have challenged Prime Minister Ahmadou Al Aminou Lo over the $2.2 billion loan programme his government agreed with the International Monetary Fund.
The deal, reached on 1 September, is a three-year Extended Credit Facility worth about 1.54 billion in IMF special drawing rights. Before any money moves, the Fund’s board has to sign off and issue a waiver over a misreporting case.
That case is the heart of the crisis. An audit by Senegal’s Court of Auditors restated debt at the end of 2023 from 74.4 per cent of output to 99.7 per cent. By the end of 2024 it stood at 118.8 per cent, and estimates that include off-balance-sheet commitments put it above 130 per cent.
Finance Minister Cheikh Diba has kept CFA franc-denominated debt out of any restructuring, protecting roughly CFAF 4,307 billion falling due in 2026. Only external creditors — bilateral lenders, commercial loans and Eurobond holders — face losses.
Moody’s cut Senegal to Caa2 with a negative outlook on 28 August.
The row over how to handle the debt already cost one government: President Bassirou Diomaye Faye backed restructuring, his then prime minister Ousmane Sonko opposed it, and Faye dismissed him in May and appointed Lo, a career central banker.
KNN Newsroom is the staff byline for stories written, rewritten and edited at the Kibra News Network desk. Where a story credits an outside outlet, the original source is linked at the foot of the piece.
