DAKAR, Oct 24 – Senegal’s bank creditor committee has selected financial advisory firm Houlihan Lokey as its adviser, as the West African country advances efforts to restructure its debt, according to four people cited by Reuters on Friday.
The appointment follows the government’s announcement last month that it intends to restore debt sustainability through an “enhanced” version of the G20 Common Framework, a debt treatment mechanism designed to coordinate negotiations between sovereign borrowers and their creditors.
Senegal is seeking to use the enhanced process to accelerate negotiations as it works to address mounting fiscal pressures and establish a sustainable debt position.
The restructuring framework includes separate creditor committees representing commercial banks and regional development institutions, in addition to the established groups representing bilateral lenders and bondholders.
According to the presentation, the Senegalese government met with bank creditors on September 25. Lenders subsequently formed a committee, which has now selected Houlihan Lokey to provide financial advice.
The appointment marks a step in organising negotiations with commercial bank creditors, although the selection of an adviser does not itself establish the terms or timing of any eventual debt restructuring agreement.
The broader process will involve coordination among Senegal and its different creditor groups as the government pursues its stated objective of restoring debt sustainability under the enhanced G20 framework.
