The International Monetary Fund said on Tuesday it will be weeks before it can move forward with a waiver for Senegal’s debt misreporting case, as it continues discussions on corrective measures with the West African country.
The IMF froze Senegal’s previous $1.9 billion lending programme after the nation’s then-new leaders in September 2024 said they had uncovered debt misreporting that has since ballooned to more than $11 billion.
“Discussions on several corrective measures will continue over the next few weeks before the misreporting case can be presented to the IMF Executive Board,” its head of mission, Edward Gemayel, said in a statement following a staff mission to Senegal.
Senegalese leaders had been expecting the IMF to move forward on a misreporting waiver months ago; without board approval of a waiver, the government could be forced to repay.
A waiver is also essential in order for the country to secure a new lending programme.
“The IMF stands ready to assist Senegal in designing an ambitious reform agenda,” Gemayel said.
The statement also said Senegalese authorities told the Fund they intend to seek a new IMF programme.
Last month, the IMF said it needed more data before it could firm up its assessment of Senegal’s debt situation and also needed an agreement on key remedial measures. The hidden debts were a black eye for the IMF, which was monitoring Senegal’s finances at the time due to the active lending programme.
Senegal plans to rebase its economy for the first time since 2018, which some investors say could push its debt-to-GDP back down into more palatable double digits.
Prime Minister Ousmane Sonko earlier this month unveiled a new economic recovery plan, pledging to finance 90% of the initiative through domestic resources and avoid additional debt.
