Senegal has reached a staff-level agreement with the International Monetary Fund (IMF) on a $2.2 billion, three-year loan programme, as the country moves to address its mounting debt crisis following revelations of previously undisclosed borrowing.

Senegal’s Finance Ministry has also launched a “debt treatment plan” as part of a sovereign initiative, while the IMF prepares to resume lending after billions of dollars in misreported debt were uncovered.

Senegal’s debt reached 132% of GDP at the end of 2024 after a state audit revealed extensive misreporting of loans. The IMF has since called for decisive corrective measures to address the issue and strengthen safeguards against future misreporting.

The new 36-month programme, covering 2026–2029, is aimed at restoring macroeconomic stability and debt sustainability while supporting economic reforms.

The government also intends to seek debt treatment under an enhanced version of the G20-backed Common Framework.

However, the IMF agreement is still subject to approval by IMF management and the Executive Board, as well as the completion of corrective measures linked to the misreported debt.

The announcement comes after nearly two years of difficult negotiations following the suspension of Senegal’s previous $1.8 billion IMF programme.

The debt crisis has also been accompanied by political tensions, particularly between President Bassirou Diomaye Faye and former Prime Minister Ousmane Sonko, who previously opposed debt restructuring.

Senegal’s international bonds fell sharply following the announcement as investors anticipated potential losses.

The IMF said the new programme is expected to help mobilise additional financing from the World Bank, African Development Bank and other development partners.