The rating agency Moody’s has revised Senegal’s rating downwards, from Ba3 with stable outlook to B1 with surveillance.
The Ministry of Finance and Budget explains that this drop is following the upward revision of the budget deficit and the level of debt observed over the period 2019-2023, following the audit of public finances, the preliminary results of which were were communicated by the Government on September 26, 2024.
“This audit, ordered by the highest authorities and prepared under the direction of the Minister of Finance and Budget, meets the requirements of Law 2012-22 of December 27, 2012 on the Code of Transparency in the Management of Public Finances,” reports a press release received by APA.
Faced with this situation, the Minister of Finance and Budget reaffirms the Government’s firm desire to quickly implement ambitious reforms to significantly reduce the deficit from 2025 and consolidate this reduction in the short term, in accordance with the commitments made within the the West African Economic and Monetary Union (UEMOA) and the Economic Community of West African States (ECOWAS).
“In addition, a clear trajectory will be defined to lower the debt rate. In addition, structural reforms aimed at strengthening the integrity of the public finance management framework will be implemented, aiming for high international standards,” promises the Ministry of Finance and Budget.
Continuing, he indicates that Senegal will continue its collaboration with its international partners, notably the World Bank and the International Monetary Fund (IMF) but also ECOWAS, UEMOA, the Central Bank of West African States (Bceao ), the African Development Bank (AfDB), the West African Development Bank (Boad) and all its regional partners to improve debt management, strengthen financial governance and ensure increased transparency in budgetary processes.
“Reforms will include the adoption of integrated and computerized financial systems, strengthening control mechanisms and improving institutional coordination to ensure effective decision-making. All this will be carried out in accordance with the community standards linking our country to ECOWAS and UEMOA, while complying with best practices,” explains the press release.
He emphasizes that the Government remains open to dialogue with its partners throughout the process in order to guarantee a stable and prosperous economic future.
TE/APA
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