According to Reuters, Senegal will have to wait at least until June to obtain a resolution of its loan program with the International Monetary Fund (IMF), which could allow new disbursements. A source close to the matter shared this information with Reuters.
The Finance Ministry did not immediately comment on the possible delay, which represents a challenge for a government seeking rapid support in the face of an increasingly fragile fiscal situation.
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A $1.9 billion program signed with the IMF in June 2023 is currently suspended. The suspension follows a government audit, carried out three months after the signing, which revealed higher debt and deficit levels than those reported by the previous administration. This situation led to a rise in Senegal’s dollar bond yields and caused downgrades of its credit rating.
Dakar is now seeking to negotiate a new program with the IMF. However, according to the source, the Fund will not consider the request before the conclusions of the audit, which must be validated by the Court of Auditors of Senegal by mid-December, are examined by the board of directors of the IMF. “They must start by resolving the problems identified during the audit,” the source said. After certification, the IMF board will need to determine next steps, a process that could take another six months.
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Senegal’s Ministry of Finance has not yet responded to requests for comment.
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