The Senegalese government has taken a significant step in its external debt treatment plan, holding an online meeting with creditors on October 6. The meeting, facilitated by the International Monetary Fund (IMF), aimed to provide an update on the country's economic and financial situation, as well as its debt treatment strategy. The Senegalese delegation, led by Babacar Touré, Director General of the Directorate General of Financing and Debt (DGF), and Minister of Budget Bassirou Sarr, reassured creditors of the country's commitment to managing its debt portfolio optimally.
The meeting was part of the implementation of Senegal's External Debt Treatment Plan (PTDS), which is aligned with the G20 Common Framework. The plan aims to provide a coordinated approach to debt treatment, ensuring that creditors are treated fairly and that the country's debt is managed sustainably. The IMF presented the key elements of its agreement with Senegal, including the policy and lending frameworks that will guide the country's debt treatment.
Senegal's debt stock stands at 18,300 billion FCFA, with 8,500 billion FCFA owed to development banks. The country's commercial debt is 5,440 billion FCFA, while its bilateral debt is 4,369 billion FCFA. The government has set a target of November 2026 to finalize the different frameworks of its partnership with the IMF, which will be followed by the approval of the program by the IMF's Board of Directors.
The meeting with creditors was well-received, with investors appreciating the opportunity to engage with the Senegalese government. However, some bilateral creditors raised concerns about the need for a level playing field in debt treatment. The Senegalese government has reassured its partners that it will maintain a dialogue with them and provide regular updates on its debt treatment plan.
The IMF played a limited role in the meeting, allowing Senegal to present its vision and update on its debt situation and corrective measures. The Fund's presence was seen as a positive development, as it provided an opportunity for creditors to engage with the IMF and understand its role in supporting Senegal's debt treatment.
Senegal aims to sign principle agreements with official creditor committees and the ad hoc group of bondholders by December 2026. The agreements will pave the way for the implementation of the debt treatment plan in early 2027. The government has committed to maintaining a transparent and predictable approach to debt treatment, with a focus on ensuring that creditors are treated fairly.
The meeting with creditors marks an important step in Senegal's efforts to manage its external debt sustainably. The country is committed to implementing its debt treatment plan, which is expected to provide a framework for managing its debt portfolio and ensuring that creditors are treated fairly. The government will continue to engage with its partners and provide regular updates on its progress.
Key points
- Senegal's external debt stock stands at 18,300 billion FCFA.
- The country aims to finalize its partnership framework with the IMF by November 2026.
- Senegal has reassured creditors of its commitment to managing its debt portfolio optimally.
