Senegal at Crossroads: Tackling Debt Vulnerabilities with the IMF

The International Monetary Fund (IMF) has engaged in discussions with Senegal to address its debt issues. Prime Minister Ousmane Sonko criticized the IMF's suggested debt restructuring. The IMF emphasized that any decision remains Senegal's prerogative. Past agreements were suspended following revelations of hidden debts.

The International Monetary Fund has initiated talks with Senegal to explore solutions for the West African nation's pressing debt challenges. An IMF spokesperson confirmed on Tuesday that these discussions are part of the Fund's advisory role to help nations navigate complex economic waters.

Senegal's Prime Minister Ousmane Sonko has vocally opposed the idea of restructuring the nation's debt, a standpoint that rattled the markets, with international bonds experiencing a sharp decline on Monday. He asserted that the government rejects external pressures from the IMF regarding its debt management strategies.

While the IMF aims to provide expert advice, it acknowledges that the decision to restructure remains a sovereign prerogative. A recent IMF mission to Dakar concluded without establishing a new lending package, continuing a freeze from last year due to undisclosed national debts exceeding $11 billion.

(With inputs from agencies.)