Senegal says its public debt data is “fully transparent” and now aligned with International Monetary Fund figures following audits, even as questions persist over past discrepancies and alternative financing structures.
Senegal’s public debt director Alioune Diouf said the government and the IMF were now working from the same dataset after comprehensive reviews covering 2019–2024.
“We are aligned on all the figures… there is no difference,” Diouf said, adding that both debt stock and fiscal balances had been reconciled.
His remarks come as Senegal seeks to restore confidence in its public finances after the IMF suspended a $1.8 billion programme in 2024 following revelations of previously unreported liabilities and concerns over data reporting practices.
The West African nation has since undergone multiple audits and expanded its disclosure framework, including quarterly budget reports and a debt statistical bulletin. Authorities say this has improved transparency and strengthened alignment with IMF reporting standards.
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However, Diouf acknowledged that some apparent discrepancies still exist between government and IMF publications, even if he insisted the underlying data has been harmonised.
He also defended the government’s use of complex financing arrangements, including swap-linked structures and domestic market operations, saying these are fully captured in aggregate issuance figures even if not individually itemised.
“These are operations carried out through auctions… you can only see them through the overall amounts raised,” he said.
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The comments come amid scrutiny of so-called total return swap-type instruments used in recent financing operations, which officials say have helped reduce borrowing costs compared with external debt.
Diouf argued that such instruments are tied to domestic government securities and structured to limit exposure to market volatility, saying risks of margin calls were “almost nonexistent” due to domestic control over interest rate dynamics.
He also rejected suggestions that Senegal has accumulated arrears, stressing that all obligations are being serviced within agreed grace periods.
“We’re working to avoid them… we’re working to pay on time,” he said.
The IMF has previously raised concerns about Senegal’s debt trajectory and data accuracy, while acknowledging progress in reconciliation efforts. Discussions on a new programme are ongoing.
The controversy first emerged after the discovery of previously unrecorded liabilities, including bank loans later converted into tradable government securities. Authorities now describe these as part of an “active debt management” strategy rather than missed payments.
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With external market access constrained since the suspension of the IMF programme, Senegal has increasingly turned to regional financial markets and alternative funding mechanisms to meet its financing needs.
Officials say efforts are now focused on restoring full IMF support and concluding a new programme, though key details remain under negotiation.
For now, Senegal maintains that its debt position is fully accounted for and transparent — even as international institutions continue to scrutinise the figures.
Senegal’s debt and fiscal management has come under increased international scrutiny since 2024, after questions emerged over the accuracy and completeness of previously reported public debt data.
The controversy prompted the International Monetary Fund to suspend a $1.8 billion lending programme, following the discovery of previously unreported liabilities and inconsistencies in fiscal reporting. The suspension marked a significant setback for Senegal, which had been viewed as one of West Africa’s more stable reform-driven economies.
Since then, the government has undertaken a series of audits covering the period from 2019 to 2024, aimed at reconciling national debt data with IMF assessments. Officials say these reviews have helped align the two sets of figures, though discussions with the IMF are still ongoing to finalise a new programme framework.
A key issue in the dispute has been the identification of liabilities that were not initially recorded in official debt statistics. These included bank loans later converted into government securities known as APEs, which authorities now describe as previously unintegrated obligations rather than arrears.
The government has also expanded its disclosure framework, introducing more frequent fiscal reporting and debt bulletins intended to improve transparency and restore investor confidence. Officials argue that these measures have strengthened oversight and brought reporting standards closer to international benchmarks.
However, some concerns remain over the structure and visibility of certain financing operations, including domestic market transactions and swap-type arrangements used to manage borrowing costs. While authorities say these are fully captured in aggregate debt issuance data, critics have raised questions about the level of detail provided in public disclosures.
Senegal has also faced tighter financing conditions since the IMF programme was paused, leading it to rely more heavily on regional capital markets and alternative funding mechanisms to meet its budgetary needs.
Despite these challenges, officials maintain that all debt obligations are being serviced within agreed timelines and grace periods, and that there are no overdue arrears.
The ongoing negotiations with the IMF are now focused on restoring a formal lending programme and ensuring long-term debt sustainability. For policymakers, the priority remains balancing fiscal transparency, market access and continued economic stability while rebuilding confidence among international partners.
