Senegal’s PM rejects debt restructuring

Senegal’s Prime Minister Ousmane Sonko has publicly rejected the idea of restructuring the nation’s debt, emphasizing the government’s commitment to financial sovereignty and market credibility. Sonko argued that while such a measure might offer temporary relief, it would severely damage Senegal’s financial reputation and access to international markets.

This stance follows difficult negotiations with the International Monetary Fund (IMF), which recently concluded a mission without reaching an agreement on a new facility. The Senegalese government is grappling with a significant budget deficit and a high public debt burden, partly due to billions in previously undisclosed borrowing from the prior administration.

Instead of restructuring, the administration plans to prioritize raising domestic revenue through new levies on items like tobacco, alcohol, and gambling. This strategy aims to stabilize the country’s finances while shielding ordinary households from increased costs on essential goods.