Senegal's Loan Saga: Awaiting IMF Resolution Amid Fiscal Challenges

Senegal's lending program with the IMF has been delayed until at least June due to audit findings revealing larger debt and deficit figures. The IMF board will review these findings before considering a new request from Senegal for further financial support. The delay pressures the government to stabilize its fiscal situation.

Senegal faces a delay in resolving its IMF lending program until June, following audit revelations of increased debt and deficit figures. The finance ministry has not commented on the implications, which challenge the government's efforts to stabilize its fiscal circumstances.

The $1.9 billion IMF program initiated in June 2023 has stalled after an audit three months later exposed discrepancies in financial data from previous administrations. These findings have caused an increase in bond yields and credit rating downgrades, necessitating swift governmental action.

The IMF awaits certification of the audit by Senegal's court of auditors, with an executive board review to follow. Resolutions could take months, while the government's current leadership is under pressure to strategize economic reforms to win a legislative majority.

(With inputs from agencies.)