Senegal is expected to name Lazard as its financial advisor to navigate its significant debt challenges. This decision follows a selection process where Lazard emerged as the frontrunner, though neither Lazard nor Senegal's finance ministry has officially commented on the appointment.
The West African nation revealed previously unreported debts amounting to over $13 billion in 2024, which represents more than a quarter of its Gross Domestic Product. Since this disclosure, Senegal has been actively working to strengthen its public finances to address these liabilities.
The choice of a financial advisor is crucial for Senegal as it prepares to engage in debt talks. This move not only signals the country's strategy for managing its financial obligations but also comes as some bondholders, including Morgan Stanley Investment Management and BlueBay Asset Management, have begun informal discussions about forming a group in anticipation of a potential debt rework. The advisory role is also expected to assist Senegal in its negotiations for a new program with the International Monetary Fund.
