Senegal’s government is ready to restructure its debt if necessary, its trade minister said after IMF officials completed a five-day visit to the country.
Dakar risked defaulting after the government uncovered billions of dollars in undisclosed debt by the previous leadership. The discovery caused Senegal’s debt bill to soar to more than 130% of its GDP.
Disagreements over how to resolve the debt problem were at the heart of an ongoing political crisis: President Bassirou Diomaye Faye suggested he was open to restructuring, which his previous Prime Minister Ousmane Sonko opposed. The schism prompted Faye to fire Sonko and dissolve his government before appointing new ministers. Sonko — now the influential speaker of parliament — has softened his anti-restructuring stance.
The trade minister’s remarks offer the clearest picture yet of how Dakar could resolve the debt crisis after months of political infighting. The IMF praised Dakar’s progress for narrowing its deficit, but warned the Iran war posed “elevated risks” in the near term.
