Senegal Debt Crisis and Political Tension Stall IMF Deal
President Bassirou Diomaye Faye has taken direct control of IMF talks after sacking his prime minister amid a deepening debt crisis. The discovery of eleven billion dollars in unreported debt from the previous administration has frozen financial support and pushed bond prices to near-record lows.
Senegal saw its sovereign bonds fall to near-record lows after President Bassirou Diomaye Faye dismissed Prime Minister Ousmane Sonko to lead debt talks. The move follows the discovery of $11 billion in unreported debt, raising the total debt-to-GDP ratio to 119% by the end of 2024. Political instability and a frozen $1.8 billion IMF program increase the likelihood of a sovereign debt restructuring.
