• Senegal seeks new IMF loan program after 2024 financing freeze

• Talks focus on debt revisions, fiscal adjustment and data credibility

• Government plans funding diversification as major repayments loom in 2026

Senegal’s authorities are confident they will soon conclude a new loan program with the International Monetary Fund, the finance minister told parliament, as the country grapples with a strained debt situation.

“We hope to finalize a program with the IMF very soon,” Cheikh Diba said on Tuesday. He added that technical discussions were progressing on several sensitive issues, including revisions to macroeconomic data, fiscal adjustment and public debt management.

Senegal is seeking to rebuild trust with the IMF after a $1.8 billion financing program was frozen in 2024. The suspension followed the discovery of undeclared debts by the previous administration, which the IMF said pushed the country’s debt to nearly 132% of GDP by the end of last year.

In December, the IMF acknowledged “significant progress” in talks, while continuing an internal investigation into the failures that led to the underestimation of Senegal’s debt. The arrival of a new IMF mission chief, expected in January, could help accelerate an agreement.

The finance minister struck a more conciliatory tone than Prime Minister Ousmane Sonko, who recently criticised what he described as IMF pressure for a debt restructuring, an option the government says it rejects.

As negotiations continue, Senegalese authorities said they intend to further diversify their funding sources. This includes raising funds on international markets through eurobonds, which the country did not tap in 2025. Significant debt repayments are due in 2026.

The government said this would help meet immediate cash flow needs while stabilising the country’s fiscal trajectory.

Fiacre E. Kakpo