Senegal says debt restructuring not necessary despite repayment challenges

Senegalese Prime Minister Ousmane Sonko said on Thursday that the country would not need to implement a debt restructuring plan despite facing a difficult repayment schedule.

Senegal‘s debt reached 132% of GDP at the end of 2024 after the current leadership uncovered billions in unreported debts from the previous administration, prompting the International Monetary Fund to freeze a $1.8 billion lending programme.

Sonko stated that the government considers its debt sustainable, having managed repayments for the past year and a half, and believes solutions can be found without restructuring. He noted that growth and revenue projections have been validated by all partners, including the IMF, with financing identified as the main challenge.

Finance Minister Cheikh Diba added that Senegal hopes to finalise a programme with the IMF “very quickly” and that progress has been made on key issues related to managing the country’s debt crisis.