Senegal's IMF loan: Sonko rejects President Faye's approach

A fresh row has erupted in Senegal after Speaker of the National Assembly Ousmane Sonko rejected the government's approach to its staggering foreign debt.

Senegal's debt hit 25.2 trillion CFA francs (about 44 billion US dollars) by end-2025 after an official audit. That’s about 132% of GDP.

It poses a fiscal crisis for the administration of President Bassirou Diomaye Faye, who came to power in 2024.

The audit found massive under-declaration by the previous government, prompting the IMF to suspend planned loans. Senegal is now back in talks with the IMF, World Bank and G20.

In September, the IMF announced a staff-level agreement on a new 36-month, 2.2 billion dollars Extended Credit Facility to restore "macroeconomic stability" President Faye hailed it as a sign of a "strong partnership".

As part of the programme, Senegal would implement an enhanced version of the G20 Common Framework, a 2020 mechanism to help nations restructure debt under strict conditions. That is what Speaker of the National Assembly Ousman Sonko has rejected, warning ordinary Senegalese would bear the cost.

Hidden debt

Sonko told a press conference on Monday 19 October that Senegal did not need the G20 mechanism for what he called "a simple debt reprofiling".

He said the plan imposed "conditionalities" visible in the 2027 budget President Faye submitted to parliament, drastically cutting social spending on education, employment, training, and electricity and petroleum subsidies.

He vowed that MPs "cannot accept" the policy, accused the IMF of being "accomplice to the hidden debt" and warned any deadlock in addressing the debt would be the "sole responsibility" of Faye's administration.

However, Faye's government insists the citizens will not be badly hit. Prime Minister Ahmadou Al Aminou Lo said in early September Senegal would not pursue a "drastic adjustment" or harm social sectors.

The government says it seeks extended maturity and renegotiated interest rates.

Analysts see the row as part of a lingering feud between Faye and Sonko, whom the president dismissed as prime minister in May.

Sonko was later elected Speaker, with his PASTEF party now holding a majority in Parliament.