Senegal and IMF Resume Technical Talks on Debt Crisis
Senegal is working to resolve a fiscal crisis after discovering billions in hidden debt from the previous administration. Following a recent government reshuffle and growth forecast cuts, the IMF will return to Dakar this month to continue technical discussions regarding a potential new lending program.
Senegal is attempting to resolve a fiscal crisis after discovering approximately $13 billion in debt hidden by the previous administration. The revelation pushed the debt-to-GDP ratio to an estimated 119%, far exceeding the previously reported 74.41%. Investors face prolonged uncertainty as the government balances IMF demands for restructuring against a domestic recovery plan.
### Hidden Borrowing Triggers Credit Downgrades The fiscal gap emerged in February 2025 when the Court of Auditors confirmed the government of former President Macky Sall understated end-2023 debt. This discrepancy led S&P GLOBAL INC to downgrade the sovereign rating to CCC+ by November 2025. MOODY'S CORP also cut the long-term rating to B1 following the initial data revisions.
