The Government of Senegal has revealed that the International Monetary Fund (IMF) has expressed concern over the country’s “very large” liquidity needs pegged at approximately 6,000 billion CFA francs (around US $10.6 billion) for the coming fiscal period.
Finance Minister Cheikh Diba told lawmakers the IMF’s warning came amid efforts to finalise a new lending program to address financial instability triggered by hidden debts accumulated under the previous administration.
The liquidity crunch is tied to a broader debt‑and‑fiscal crisis: a long‑running audit earlier this year uncovered billions in previously undisclosed liabilities, prompting the suspension of a major IMF support package in 2024.
In response, Senegal’s government has announced plans to restructure debts, renegotiate maturities, and free up domestic resources. It remains optimistic about managing obligations sustainably though analysts warn that persistent debt service costs and investor anxiety are likely to weigh heavily on economic growth and public spending in the coming years.
The disclosure has rattled markets: Senegalese sovereign bonds saw declines, and investor confidence has dipped as the country negotiates with the IMF for a path forward.
