Senegal and the International Monetary Fund failed to agree on a lending deal after the latest round of talks in the debt-strapped West African nation.
“Fundamental differences” remain between the two sides, the country’s finance minister told lawmakers on Tuesday, while an IMF spokesperson told Reuters that the group remains engaged with Senegalese authorities and talks will continue.
Senegal’s debt burden has now crossed 130% of GDP, after the administration that came to power in 2024 uncovered billions of dollars of unreported borrowing under the previous government. Dakar has ruled out debt restructuring and looked toward West Africa’s regional debt market to bridge its budget gap. But some experts are questioning its position: Debt restructuring is Senegal’s best bet, argued two economists in a commentary for Project Syndicate. “Senegal does not have any pain-free options for escaping its current morass,” they wrote. “But absent large volumes of cheap liquidity, attempting to repay its debts at all costs would be more dangerous — and, ultimately, more costly — than default.”
