Senegal Bonds Fall on Leadership Change and Debt Risks
President Faye replaced Prime Minister Sonko with economist Ahmadou Al Aminou Lo to restart stalled IMF negotiations. Investors remain cautious as bond prices hit record lows amid concerns that a new government may pursue a deep debt restructuring.
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Senegal President Bassirou Diomaye Faye dismissed Prime Minister Ousmane Sonko on Friday, causing dollar-denominated bonds to fall nearly 4 cents on Tuesday. The bonds due May 2033 reached record lows of 50.6 cents as investors priced in higher restructuring risks. A stalled $1.8 billion IMF program and a $2 billion fuel subsidy gap dominate the sovereign debt outlook, further complicated by Sonko's political comeback as speaker of parliament this week.
