IMF and Senegal $2.2bn Loan Agreement
The International Monetary Fund (IMF) and the Government of Senegal concluded a staff‑level agreement on 2 September 2026 for a three‑year loan package amounting to US$2.2 billion. Senegal’s Ministry of Economy and Finance announced that the agreement adopts an “enhanced common framework” aimed at restoring debt sustainability, although it did not disclose the specific policy measures to be implemented.
At the end of 2024, Senegal’s public debt was recorded at 132 % of gross domestic product, according to IMF data. This high debt ratio follows the discovery that the previous administration had engaged in unreported borrowing. The IMF estimates the misreported debt to exceed US$11 billion based on figures from the end of 2023, while some analysts argue the figure could be as high as US$13 billion, representing more than a quarter of Senegal’s roughly US$40 billion economy.
The revelation of the hidden borrowing prompted the IMF to freeze an earlier US$1.8 billion lending programme. Since then, the two parties have been engaged in extended negotiations to design a replacement financing arrangement. The newly announced agreement requires Senegal to undertake “decisive corrective actions” to support its request for a waiver related to the misreported debt. The finalisation of the loan is subject to approval by IMF management and the IMF Board of Governors.
Market reaction was immediate: Senegal’s sovereign bonds slumped to record lows, trading below 50 cents in both US‑dollar and euro terms, which corresponds to roughly half of their original face value.