Senegal PM Says Country Will Not Seek Debt Restructuring Despite IMF Concerns

Senegalese Prime Minister Ousmane Sonko has said his government will not pursue debt restructuring, despite mounting repayment pressures and warnings from the International Monetary Fund that the country’s debt burden has risen sharply.

Speaking at a joint press conference with Mauritania’s prime minister on Thursday, Sonko said Senegal could overcome its financial difficulties without resorting to restructuring its debt. He expressed confidence that the country’s obligations remain at sustainable levels and insisted there are alternative paths to stabilising public finances.

The IMF has said Senegal’s debt reached 132% of gross domestic product by the end of 2024, prompting the Fund to pause a $1.8 billion lending programme. The suspension has left Dakar struggling to meet its financing needs at a time of growing fiscal pressure.

Sonko’s government has accused the previous administration of former President Macky Sall of concealing the true scale and extent of the country’s debt, a claim that has intensified political tensions since the change in leadership. The debt is owed to a wide range of creditors, including commercial lenders, multilateral institutions and regional partners.

In recent months, Senegal has relied heavily on regional bond markets to raise funds, reflecting both its continued access to financing and the challenges posed by higher borrowing costs. Analysts say maintaining investor confidence will be critical as the government seeks to stabilise the economy while avoiding restructuring talks.

The IMF has not commented on Sonko’s latest remarks, but economists warn that sustained fiscal discipline and transparency will be key if Senegal is to restore full access to international financial support.