Senegal is anticipated to finalize an agreement with the International Monetary Fund (IMF) to unlock and receive $1.8 billion in financial aid.
According to reports, the release of funds to Senegal has been delayed due to a budget deficit and national debt that exceed earlier projections. Senegal’s Ministry of Finance initially estimated a deficit of 5.5% of GDP, yet recent findings indicate a budget deficit surpassing 10% of GDP. Additionally, the country’s debt-to-GDP ratio was found to exceed 80% at the end of 2023, rather than the previously stated 73%, based on an audit verified by an independent IMF review.
Speaking at the IMF’s annual meeting in Washington, Senegal’s Finance Minister Cheikh Diba emphasized the need to update Senegal’s program with the IMF. He clarified that funds already disbursed will not require repayment, noting, “This would have been the case if we had tried to conceal the facts and were caught. In this instance, Senegal conducted an audit and returned to the IMF with the correct figures.”
Minister Diba also revealed that discussions with the IMF to reassess the terms of the aid program are ongoing, with a revised agreement expected by the first quarter of 2025 at the latest.