On Tuesday, the IMF said it has reached a staff-level agreement with Senegal on a three-year program worth $2.2 billion. The deal still requires approval from the IMF's executive board. As the IMF put it, "The main reforms planned under the IMF-supported program aim to restore the viability of public finances while protecting vulnerable households." The Fund also noted, "In addition, the authorities announced their intention to seek debt treatment in order to restore its viability." Separately, the government stated it will pursue debt restructuring via a refined G20 Common Framework.
This agreement follows months of negotiations after the Fund froze lending two years ago when hidden borrowings were revealed in 2024. The discovery led the IMF to suspend a $1.8 billion facility, cutting Senegal off from international capital markets. To keep the lights on, the government turned to the regional market and various structured deals, including total return swaps, to cover funding needs. Those instruments, used since 2025, are now part of the IMF's assessment.
The IMF says the reform plan is designed to stabilize the macro environment and restore debt sustainability, while lowering fiscal and external risks, increasing social spending, and backing sustainable, private sector driven growth. The government aims to narrow the budget deficit and keep up with debt-service obligations, according to recent finance ministry documents. IMF Mission Chief Mercedes Vera-Martin said in Dakar there will be "zero tolerance on accumulation of new external arrears."
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Senegal gauges its annual financing requirement at roughly 6 trillion CFA francs ($10.6 billion) and plans to source about 4 trillion CFA francs from the regional market this year. If the IMF board signs off, support from the program could help bridge those gaps while the country works to regain access to international markets.