DAKAR, Nov 13 – The International Monetary Fund has reiterated that Senegal must fulfil key policy commitments under a staff-level agreement before its proposed $2.2 billion lending programme can receive approval from the Fund’s executive board.
IMF spokesperson Julie Kozack said on Thursday that the outstanding requirements include completing a budget framework, implementing corrective measures to address the misreporting of previously undisclosed public debt and securing financing assurances from Senegal’s international partners.
The conditions come as political disagreements over the country’s budget process threaten to complicate progress towards securing the programme, which is central to Senegal’s efforts to restructure its public finances and address a growing debt burden.
“We are not a party to the discussions between the government and the National Assembly. That would not be our place,” she said during the IMF’s regular press briefing.
She noted that the Fund respects the constitutional and legal frameworks of its 191 member countries, adding that Senegal’s authorities must demonstrate their commitment to the policies agreed under the staff-level arrangement and their capacity to implement them through the country’s own legal and institutional structures.
“We fully respect that sovereignty of nations,” Kozack said. “What matters for us is that the authorities are committed to the policies that they’ve agreed in the staff-level agreement that can underpin the program and that the authorities are able to implement them, using Senegal’s own legal and institutional framework.”
Budget dispute complicates IMF negotiations
Senegal’s Finance Ministry said last week that a parliamentary committee had requested the withdrawal of the 2027 budget bill, intensifying a political stand-off between President Faye and former Prime Minister Ousmane Sonko.
Sonko’s PASTEF party holds a majority in the National Assembly, placing the dispute within a broader political disagreement over the government’s fiscal direction and budget process.
The legislature had previously rejected an amended 2026 budget. Both budget bills are important to advancing the IMF programme, which is intended to support Senegal’s strategy for managing and restructuring its substantial public debt.
The dispute creates additional uncertainty around the government’s ability to complete the fiscal commitments required for the Fund’s board to consider the proposed financing arrangement.
Hidden debt remains central to programme approval
Senegal’s public finances have been under pressure since 2024, when the government discovered that the previous administration had misreported substantial public debt.
Analysts estimate the undisclosed liabilities at approximately $13 billion, making the case one of the largest reported hidden-debt episodes in Africa.
The revelations prompted a reassessment of the country’s fiscal position and complicated its access to external financing. Correcting the misreporting and establishing a more reliable picture of public debt remain central to restoring confidence in Senegal’s public accounts.
Kozack said the IMF remained ready to explain the programme to stakeholders and was maintaining extensive engagement with Senegalese authorities on the policies they had agreed to implement.
However, board approval remains dependent on the completion of the outstanding conditions, including the budget framework, corrective measures addressing hidden debt and financing assurances from the country’s partners.
