The International Monetary Fund (IMF) wants Senegal to restructure its debt but the West African country is resisting such a move because it would be “a disgrace,” Senegalese Prime Minister Ousmane Sonko has told a rally in the capital Dakar.<\/p>\n
The IMF, which completed a mission to Senegal on Thursday without agreeing a new lending programme, froze Senegal’s previous $1.8 billion programme last year after its then-new leaders disclosed hidden debts which have since ballooned to more than $11 billion.<\/p>\n
The IMF, a Spokesperson for Sonko and a Spokesperson for Senegal’s Finance Ministry did not immediately respond to requests for comment on Sunday.
\nPresident Bassirou Diomaye Faye has blamed the hidden debt crisis on his predecessor Macky Sall, a position Sonko reiterated on Saturday at a rally for the ruling Pastef party.<\/p>\n
“What the IMF is proposing is a restructuring of this abysmal debt that Macky Sall’s party has burdened us with,” he said. “What we told our partners is that we don’t want a restructuring because it would be a disgrace for Senegal.”<\/p>\n
“It would imply that Senegal is a bad student who borrowed money with the intent to steal. We told them that this country is a country of dignity, a country of pride, that the Senegalese people will rise to the occasion, and that the Senegalese people will take responsibility.”<\/p>\n
It was unclear whether Sonko was referring to a restructuring of domestic or international debt, or both.<\/p>\n
The IMF estimates that at the end of last year total public sector debt, including state-owned enterprises, stood at 132% of GDP, including 4% in domestic expenditure arrears.<\/p>\n
Mission Chief Edward Gemayel told journalists that talks would continue in the coming weeks and that Senegal was serious about getting its debts in check.
\nGemayel also said a debt sustainability analysis, which is still in the works, would determine whether a restructuring was necessary.<\/p>\n
But in order to get Fund money, Senegal would have to take steps to put its debt on a sustainable path under the IMF parameters.<\/p>\n
Sonko in August unveiled a new economic recovery plan for Senegal, pledging to finance 90% of the initiative through domestic resources and avoid additional debt.<\/p>\n
<\/p>\n
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