DAKAR, May 12 (Reuters) – Senegalese President Bassirou Diomaye Faye is personally handling talks with the International Monetary Fund aimed at resolving a crisis stemming from the discovery in 2024 of previously unreported liabilities, his office said on Tuesday in statements published on social media.
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- Faye met IMF chief Kristalina Georgieva on the sidelines of the Africa Forward Summit in Nairobi, and the two discussed potential solutions for Senegal’s debt woes.
- The IMF halted a $1.8 billion program in 2024 after the initial misreporting surfaced.
- The West African nation is seeking a new lending programme with the Fund to help tackle a debt burden that has topped 130% of gross domestic product.
- Faye and Georgieva agreed to continue discussions, Faye’s office said. “This is an issue the President is personally committed to and to which he is dedicating all his energy,” it said.
- Prime Minister Ousmane Sonko last year said the IMF wanted Senegal to restructure its debt and that the government would resist such a move, calling it “a disgrace”.
- Faye and Georgieva also discussed how to address economic shocks stemming from fighting in the Middle East, “particularly the rising cost of energy and its impact on the national economy,” Faye’s office said.
- The International Monetary Fund has slashed Senegal’s economic growth forecast for this year and said it expected a larger current account deficit than previously expected.
Reporting by Diadie Ba and Portia Crowe