Senegal Makes Early Eurobond Payments to Avoid Default

Senegal has paid €380 million to holders of eurobonds due in 2028, along with $33 million for dollar-denominated bonds maturing in 2048, in a move aimed at preserving investor confidence and avoiding a potential sovereign default.

The early repayment allows Dakar to prevent a possible downgrade of its credit rating, as the country faces mounting financial pressure following the revelation of $7 billion in previously undisclosed debt in September 2024. The discovery has placed significant strain on the administration of President Bassirou Diomaye Faye.

After the hidden debt came to light, the International Monetary Fund (IMF) suspended its financial assistance programme with Senegal, complicating the country’s access to international financial markets.

In response, authorities say they are implementing strict fiscal measures to restore financial stability, including budget cuts, higher tax revenues and efforts to sustain economic growth.

As part of these reforms, the government plans to close 19 public agencies, a move expected to eliminate around 1,000 jobs and generate at least $98 million in savings.

Source: Newstimehub