An external debt restructuring in Senegal is “increasingly likely” in the second half of 2026, Bank of America (BoFA) Global Research said in a note on Thursday.
The country is struggling to manage billions in debts that the previous administration did not report, and is in prolonged talks with the International Monetary Fund for a fresh lending programme to help it cope.
“We expect external debt moratorium and restructuring negotiations increasingly likely towards H2 2026, alongside further domestic reprofiling,” the bank wrote, adding: “Given the resiliency of the local market, a moratorium on external debt and subsequent restructuring negotiations appears most likely in late 2026.”
The bank said it estimated a current recovery value in the 40s, assuming an exit yield of 11%.
–Reuters–
