Senegal’s Ministry of Economy, Finance and Planning has rejected comments by Trade Minister Serigne Gueye Diop suggesting that the government could consider restructuring its debt if necessary, saying the remarks do not represent the official position of the administration.
In a statement issued on Tuesday and circulated to international investors, the ministry said Diop’s comments “merely reflect personal views and should not be interpreted as representing the official position of the Government of Senegal.”
The clarification comes as Senegal faces mounting pressure over its public finances following the discovery in 2024 that billions of dollars in government debt had been misreported by the previous administration.
The revelation triggered a crisis of confidence among investors and led the International Monetary Fund (IMF) to suspend its lending programme with Senegal while discussions continue over a possible new arrangement.
An IMF mission chief visited Senegal last week as both sides worked toward resolving disagreements over the country’s fiscal situation and future economic programme.
Despite concerns from investors and international institutions, Senegalese authorities have publicly resisted calls for a debt restructuring. Two sources familiar with the discussions told Reuters that the government approached the latest IMF talks still reluctant to accept such a move, partly because of domestic political opposition.
Many investors, however, believe restructuring may be necessary to restore debt sustainability and improve Senegal’s long-term financial outlook.
Former Prime Minister Ousmane Sonko said in November that the IMF had proposed a debt restructuring plan, describing the proposal as “a disgrace” at the time and arguing against measures that could affect Senegal’s economic independence.
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Some investors had expected a shift in government policy following Sonko’s removal as prime minister last month, believing it could create room for a broader debt overhaul.
Market participants also anticipated clearer policy signals after Senegal merged its finance and economy ministries last month, a move expected to improve coordination on fiscal matters.
The conflicting messages from government officials have raised concerns among investors about Senegal’s debt strategy and its approach to restoring credibility in international markets.
Senegal’s debt challenges have become a major focus for investors after the discovery of previously undisclosed liabilities, which increased concerns over the country’s ability to meet obligations and maintain economic stability.
The government has argued that it remains committed to protecting economic growth while managing its finances responsibly, but the IMF and investors have continued to emphasize the importance of transparency, fiscal reforms and credible debt management.
A successful agreement with the IMF would be important for Senegal as it seeks to restore access to financing, strengthen investor confidence and support development projects.
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For now, the government’s rejection of the trade minister’s comments suggests that Senegal is still seeking alternatives to a formal debt restructuring, even as markets continue to watch closely for signs of policy changes.
