Senegal’s finance ministry said the government remains committed to talks with the International Monetary Fund after comments by the prime minister ruling out a debt restructuring sent bonds plummeting last week.
Senegal will “honor its obligations,” the ministry last week told investors in a letter, seen by Reuters, that struck a more conciliatory tone towards the IMF than comments made by Prime Minister Ousmane Sonko. He had voiced his opposition to proposed debt restructuring, saying such a move would make it more difficult to attract investors. He also described recent talks with the IMF as “difficult.”
Negotiations with the IMF for a $1.8 billion lending program have been on hold since last year following the discovery of unreported debt from the previous government that has climbed to about $11 billion. On Friday, credit rating agency S&P Global lowered Senegal’s long-term foreign currency rating by one notch, citing the country’s “precarious debt position.”
