(Ecofin Agency) - The program is expected to reduce debt vulnerabilities and support the fight against money laundering, terrorist financing, and climate adaptation efforts.

The International Monetary Fund (IMF) announced, Thursday (May 11), a staff-level agreement with Senegal on an over $1.8 billion assistance program to support reforms aimed at enhancing the country’s economic resilience. 

The 36-month assistance program is reached under the “Extended Fund Facility (EFF) and Extended Credit Facility (ECF) of about US$ 1.526 billion, combined with the Resilience and Sustainability Facility (RSF) of about US$ 327.1 million.” 

According to the IMF, the EFF and ECF financing will support reforms that focus on "reducing debt vulnerabilities by embarking on a fiscal consolidation, strengthening governance and the anti-money laundering and financing of terrorism (AML/CFT) framework, and delivering a more inclusive and job-rich growth [...] by strengthening social safety nets, promoting gender equality, and improving the business environment.”

“In 2022, a confluence of external shocks largely linked to the war in Ukraine hindered the post-Covid-19 recovery, strained public finances, widened external current account deficit, increased debt levels, and eroded regional international reserves,” the multilateral institution explains.  

The RSF funding will support Senegal's climate change mitigation objectives by helping authorities meet their Nationally Determined Contribution (NDC) commitments under the 2015 Paris Climate Agreement and by integrating climate considerations into budget preparation, execution, and monitoring.