Senegal’s Hidden Debt Crisis Worsens as IMF Talks Stall, Raising Regional Stability Risks
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Senegal’s $1.8 billion IMF program stalled after discovery of over $11 billion in unreported liabilities at end-2023, per IMF estimates, with analysts citing up to $13 billion or over 25% of total debt. This triggered rating downgrades and a decline in the 2033 dollar bonds to 60.84 cents on November 28, down 2.43 cents, as Finance Minister Cheikh Diba noted IMF concerns over cash position and deficit funding. Official public debt hit 23.67 trillion CFA francs ($42.15 billion) or 119% of GDP by end-2024, with external liabilities over $28 billion including $7.7 billion in Eurobonds and export credits.
The government secured 70% of 2025 funding via WAEMU markets and retail bonds, but debt service rises 11% to 5.49 trillion CFA francs in 2026. A GDP rebasing eased headline ratios, yet IMF and World Bank prepare a joint assessment. Prime Minister Ousmane Sonko rejected restructuring as a “disgrace” after Washington talks with IMF head Kristalina Georgieva. WAEMU euro peg and regional reserves provide buffers, but commercial debt rollover risks contagion to holders like Ivory Coast via UMOA-Titres, pressuring the deficit cut from 13.4% to 5.3% of GDP by 2026.
