The International Monetary Fund commented on Tuesday that it would take them a few weeks to be able to go ahead with the waiver they have been waiting for as they keep on talking about correcting measures with the West African country.
After Senegal’s new leaders in September 2024 found out that debts had been misreported, the IMF had suspended the $1.9 billion credit line that had been previously agreed upon with Senegal.
Edward Gemayel, the head of the IMF mission, stated in a message after the staff mission to Senegal, that consultations on several corrective measures would be held over the next few weeks before the case of misreporting will be presented to the IMF Executive Board.
The Senegalese officials had expected that the IMF would progress with the misreporting discharge a long time ago.
In case the board does not give its approval of a waiver, the government may have to pay back the money that has already been lent. A new loan can be granted only if the country is issued such a waiver.
The statement said Senegalese authorities told the Fund they intend to seek a new IMF programme, with Gemayel noting the IMF stands ready to assist Senegal in designing a reform agenda.
Senegal plans to rebase its economy for the first time since 2018, which some investors say could push its debt-to-GDP ratio back into double digits.
Earlier this month, Prime Minister Ousmane Sonko announced an economic recovery plan that would be largely funded by domestic resources with 90 percent of the requirements being met from within and no additional debt being incurred.
