The International Monetary Fund (IMF) has suspended its $1.8 billion Extended Credit Facility (ECF) to Senegal, citing concerns over misreported economic data under the administration of former President Macky Sall. The suspension raises uncertainty about Senegal’s financial stability as the new government works to address economic discrepancies. The IMF announced the decision on Monday, stating that discussions on a new financial program could not move forward until the current administration resolves concerns over data misreporting.
The issue stems from a recent audit by Senegal’s Court of Auditors, which found that the country’s debt and budget deficit were significantly underreported by the previous government. The audit revealed that as of December 2023, Senegal’s total public debt stood at 99.67% of GDP—far higher than the officially reported 74.41%. The misrepresentation has raised concerns about Senegal’s fiscal transparency and economic credibility, prompting the IMF to pause its financial assistance.
Senegal’s Finance Minister, Cheikh Diba, has expressed confidence that a new IMF program could be negotiated by June, which would help stabilize the country’s finances and restore investor confidence. However, IMF mission chief Edward Gemayel remained cautious, stating that while “everything is possible,” he would not commit to a specific timeline for a new agreement. When asked whether Senegal could face a credit event—such as debt restructuring, rescheduling, or default—Gemayel said it was “too early to tell” but acknowledged the seriousness of the situation.
The IMF’s decision comes at a crucial time for Senegal, as the new government led by President Bassirou Diomaye Faye seeks to implement reforms and rebuild trust with international lenders.
