Senegal’s government is prepared to consider restructuring its debt if it becomes necessary, the country’s Industry and Trade Minister Serigne Gueye Diop has said, marking a shift in its position as it seeks to restore financial stability.
Speaking on state television late Sunday, Diop said authorities were approaching renewed negotiations with the International Monetary Fund (IMF) without ideological restrictions and would consider all options to resolve the country’s debt crisis.
“If the solution lies in restructuring, the government is ready to do it,” Diop said.
Senegal’s public finances have been under pressure since 2024, when a review uncovered billions of dollars in previously undisclosed debt accumulated under the previous administration. The revelation led the IMF to suspend its lending programme and triggered discussions over a new support package.
An IMF delegation visited Senegal last week for talks with government officials, with the Fund expected to issue an update on the mission on Monday.
More Read
The comments by Diop represent a departure from Senegal’s earlier public stance, with authorities previously rejecting calls for debt restructuring despite growing concerns among investors that such a move may be needed to restore debt sustainability.
Former prime minister Ousmane Sonko had described restructuring as a “disgrace” before his dismissal last month, reflecting domestic political resistance to the option.
Sources familiar with the IMF discussions told Reuters that Senegal’s leadership entered the talks still hesitant about accepting restructuring because of opposition at home.
More Read
The debt controversy has complicated efforts by President Bassirou Diomaye Faye’s government to rebuild investor confidence and secure fresh international financing. The administration has argued that it inherited a difficult economic situation and has pledged greater transparency in managing public finances.
A possible restructuring would likely involve negotiations with creditors and could have implications for Senegal’s borrowing costs and access to international markets.
The IMF programme is seen as crucial for supporting Senegal’s economic reforms and maintaining confidence in one of West Africa’s more stable economies.
