Bondholders in Senegal's sovereign debt have initiated preliminary, informal talks about assembling an ad hoc creditor group. This move is a precursor to potential negotiations should the Senegalese government decide to restructure or reprofile its existing debt obligations. Major asset managers, including Morgan Stanley Investment Management and BlueBay Asset Management, have been identified as participants in these early discussions, though no formal decision has been made to create such a group.
Simultaneously, Senegal is exploring options for external financial advisors to assist with its debt management. The country has reportedly contacted several firms, including Lazard, Rothschild & Co., and Alvarez & Marsal, for this role. This follows the dismissal of former Prime Minister Ousmane Sonko, a vocal opponent of debt restructuring, and a government reshuffle. Officials have not yet made a final decision on engaging an advisor or pursuing any form of debt rework.
The West African nation has been under scrutiny regarding its public finances, particularly after disclosing previously unreported debts in 2024 that eventually exceeded $13 billion, representing over a quarter of its economy. Senegal has been largely shut out of international debt markets and has resorted to regional borrowing and complex financing arrangements like total return swaps. The International Monetary Fund (IMF) suspended a previous $1.8 billion lending program after the debt misreporting and is currently in active discussions with Senegal regarding a new program. The country's finance ministry is also planning a visit to the U.S. to discuss its sovereign debt program.
