Prime Minister Ousmane Sonko accused the former government of engaging in widespread corruption and lying and falsifying figures. He promised investigations to determine responsibility. “The rating downgrade is due to a significantly weaker budgetary and debt situation than we had previously assessed“, Moody’s said in a press release received by AFP on Saturday. It raised the country’s rating from BA3 to B1.
“Preliminary findings of the internal audit conducted by the Ministry of Finance reveal significant gaps in the accuracy of public accounts and weaknesses in the effectiveness of budget management and tax policy“, says the rating agency. It emphasizes that the high weight of the country’s debt “cconstitutes a major credit constraint which reduces its capacity to absorb shocks, particularly given low levels of wealth, and makes the government more vulnerable to higher financing costs“.
Moody’s says it expects the country’s economic situation to deteriorate. This note confirms the vision of the International Monetary Fund which predicted in September a deterioration of Senegal’s budgetary position and difficult growth prospects in 2024. It recommended “strong measures“. The Ministry of Finance reaffirmed the government’s desire to reduce the budget deficit from 2025, in a press release. It announced structural reforms to “strengthen the public finance management framework“. The government will launch on October 7 a “agenda national de transformation“.
Related News :