Senegal's Debt Crisis: A Race Against Time

Senegal is in a hurry to wrap up talks with the International Monetary Fund (IMF). The country's finance minister shared this news recently, hinting at progress in handling a massive debt problem. The debt situation is serious, with figures showing it reached 132% of the country's GDP by the end of 2024. This revelation came after the current government found out about billions in debts that were hidden by the previous administration. The IMF had put a $1. 8 billion loan on hold last year. However, there's been some good news lately. The IMF mentioned that significant progress has been made towards a new agreement. They are still looking into how they missed the unreported debt in the first place.In a recent chat with lawmakers, Finance Minister Cheikh Diba said things are going smoothly. They've agreed on some important points, like fixing data errors. They're still working on budget and debt issues. The IMF is checking out the proposals and tools Senegal has come up with. A new IMF mission chief is set to start in January. Diba hopes this will speed things up. He stressed that finalizing a program with the IMF is urgent. This is a stark contrast to the tone of Senegal's Prime Minister Ousmane Sonko. Last month, he said the IMF wants Senegal to restructure its debt. Sonko made it clear his government is not keen on this idea, calling it a "disgrace". Despite the challenges, Senegal plans to keep raising funds. They'll use various tools, including Eurobonds, to manage their financial situation.