IMF Urges Senegal Toward Urgent Economic Reforms

The IMF has urged urgent reforms in Senegal, including streamlining tax exemptions and phasing out costly energy subsidies, after uncovering misreported economic data. This discovery led to the suspension of a $1.8 billion credit facility while wider debt and budget deficits are highlighted compared to previous reports.

The International Monetary Fund has called on Senegal to implement urgent economic reforms following the discovery of misreported data. The IMF suggests reducing tax exemptions and eliminating costly energy subsidies after an audit revealed the country's debt and budget deficit were significantly higher than previously reported by the former administration.

The audit, conducted by Senegal's Court of Auditors at the end of 2023, found the nation's debt to be 99.67% of the gross domestic product, a stark contrast to the earlier figure of 74.41%. These discrepancies highlight significant issues in budget controls and financial reporting, according to IMF mission chief Edward Gemayel.

Senegal's Finance Minister, Cheikh Diba, hopes for a new IMF program by June, yet the IMF remains cautious. Mission chief Gemayel emphasized the need to resolve the misreporting issue before committing to any new program, while the IMF plans to investigate the cause of the discrepancies and preventative measures.

(With inputs from agencies.)