Senegal seeks to extend the maturity of its debt

Senegal is considering a liability management plan to extend debt maturities after a state audit showed public finances were worse than previously thought, Bloomberg reports. In simple terms, the Ministry of Finance is seeking to extend debt maturities to 2025. On that date, the Public Treasury would have to pay 3,800 billion CFA francs between interest and principal on the debt. A record amount never reached in the public finance books.

The exercise will aim to achieve “a more appropriate repayment profile favoring reprofiling with extended maturities”, underlines the agency.

Following this information from Bloomberg, the Ministry of Finance responded to the agency that Senegal is studying several options to manage its debt, but “does not intend to renegotiate or restructure”. The ambition is to “implement a proactive and strategic approach to public debt management aimed at optimizing its repayment profile while strictly respecting its commitments to investors,” indicates the ministry.

Issuance on the international market should also be reviewed “in order to smooth debt service, particularly in 2026 and 2027”.
In total, over a period of three years, Senegal would have to repay 11,000 billion CFA francs in debt.

With “ConfidentelDakar”