Senegal's National Assembly, led by Speaker Ousmane Sonko, will consider various solutions for the nation's debt challenges, including a potential restructuring of billions of dollars in loans. Sonko clarified that the government no longer holds absolute fixed positions against debt restructuring, stating that previous opposition was due to unfavorable conditions. The focus now is on solutions that advance a broader economic transformation agenda.
This shift in stance comes amidst a deepening fiscal crisis in Senegal. Earlier, in January 2026, then-Prime Minister Sonko had asserted that Senegal would not need to restructure its debt. However, by November 2025, the IMF had already noted Senegal's "significant debt vulnerabilities" and left the decision on how to address it to the government. The country's debt-to-GDP ratio was estimated at 132% when including state-owned enterprise liabilities after auditors found in February 2025 that the previous administration had understated debt by approximately $7 billion, pushing the end-2023 debt to 99.7% of GDP.
The country has been struggling to meet its financial obligations, with reports in May 2026 indicating Senegal was in arrears with the Arab Bank for Economic Development in Africa. The IMF had suspended lending programs due to debt misreporting and ongoing discussions until February 2026 revealed "fundamental differences" between Senegal and the IMF. However, an IMF mission returned to Dakar in June 2026 to resume discussions, focusing on assessing the true scale of the debt burden, preventing opaque borrowing practices, and reviewing Senegal's immediate financing requirements.
The current government, under President Bassirou Diomaye Faye who sacked Sonko as Prime Minister in May 2026, is under pressure to stabilize public finances. Growth forecasts for Senegal have been revised downward from 5% to approximately 2%, further exacerbating budgetary pressures. The shift in Sonko's rhetoric suggests a more pragmatic approach to resolving Senegal's severe budget crisis and securing potential IMF support.
