Senegal's Debt Audit Sparks Bond Selloff

Senegal's sovereign dollar bonds dropped following a government audit revealing higher debt and deficit figures than previously reported. The 2033 and 2048 bonds saw declines, with the IMF involved in discussing the next steps. The deficit for 2023 was revised to over 10%, causing Senegal to forgo an IMF disbursement.

Senegal's sovereign dollar bonds fell on Friday after a government audit revealed larger debt and deficit figures than the previous administration had reported, according to Tradeweb data.

The 2033 maturity declined 2.3 cents to bid at 84.54 cents on the dollar by 0720 GMT, and the 2048 issue decreased by 2.42 cents. The International Monetary Fund noted that the government had shared preliminary findings of the audit, welcomed the review, and is coordinating with Senegal's government on appropriate measures.

The audit initiated by President Bassirou Diomaye Faye's new government indicated the deficit at the end of 2023 was over 10%, compared to around 5% previously reported, stated Economy Minister Abdourahmane Sarr on Thursday. Consequently, Faye's administration decided not to request a July disbursement from the IMF under its $1.8 billion, three-year program to comply with IMF regulations.

Both parties are currently in discussions on future steps, the government said.

(With inputs from agencies.)