The International Monetary Fund (IMF) announced that discussions on a new economic program for Senegal would be postponed until the Government addresses issues of misreported financial data under the previous Administration, Reuters reported.
The IMF had previously suspended its existing $1.8 billion credit facility with Senegal following revelations that the country’s debt and budget deficit figures were significantly higher than those reported by former President Macky Sall’s Government. Finance Minister Cheikh Diba expressed hope for a new program by June, but IMF mission chief Edward Gemayel stated that discussions could not begin until the misreporting issue was fully resolved.
Gemayel emphasized that once the misreporting was addressed, the IMF could move swiftly towards a new program. However, he was cautious about predicting any specific timeline. The Court of Auditors’ recent review of Senegal’s finances revealed that the country’s outstanding debt at the end of 2023 was nearly 100% of GDP, much higher than the previously stated figure of around 74%. This discrepancy has raised concerns over the accuracy of financial reporting under the former government and the steps needed to prevent future issues.
In addition to the misreporting concerns, the IMF also highlighted the need for energy subsidy reforms under the current government led by President Bassirou Diomaye Faye. IMF officials noted that fuel subsidies had ballooned to as much as 4% of GDP since the COVID-19 pandemic and were primarily benefiting wealthier households. The IMF suggested that these subsidies should be gradually phased out to ensure more targeted support for vulnerable groups. The IMF’s mission in Senegal also aims to assess the country’s fiscal outlook, with expectations of increased revenues from oil and gas production, particularly from the Sangomar offshore field, which has surpassed its crude output target for 2024.