Senegal Opts for Debt Reprofiling Over Restructuring

Senegal's Prime Minister Ahmadou Al Aminou Lo informed parliament that the country would not restructure its debt but instead reprofile it. This follows a $2.2 billion loan agreement with the IMF. The term 'reprofiling' refers to extending debt maturities and renegotiating interest rates.

Senegal has decided not to pursue a restructuring of its debt, opting instead for a strategy of reprofiling, according to statements made by Prime Minister Ahmadou Al Aminou Lo to parliament on Tuesday.

The decision follows a recent agreement between Senegal and the International Monetary Fund (IMF) for a $2.2 billion, three-year loan package. The previous lending program was suspended in 2024 due to disclosed inaccuracies in debt reporting by the prior government. Senegal's Ministry of Economy and Finance had committed to an 'enhanced common framework' to ensure debt sustainability at that time, without specifying the measures to be implemented.

Lo emphasized that reprofiling would involve the extension of maturities and interest rate renegotiations, noting ongoing renegotiations in around 30 mining agreements. Lo's appointment as prime minister came shortly after President Bassirou Diomaye Faye dismissed the government led by Ousmane Sonko, now speaker of parliament, who had opposed debt restructuring.