Senegalese Prime Minister Outlines Debt Management Strategy to Parliament

Senegalese Prime Minister Ahmadou Al Aminou Lô delivered a general policy statement to parliament on Tuesday focusing on the restoration of public finances. Lô stated that Senegal must clear payment arrears totaling 1.956 trillion CFA francs, or approximately 3.5 billion dollars, as of March 2025 to avoid stalling economic activity and triggering job losses. The Prime Minister noted that the country will not pursue debt restructuring but will instead opt to reprofile by renegotiating interest rates and extending maturities. Additionally, roughly 30 mining agreements are currently being renegotiated.

These efforts follow a staff level agreement with the International Monetary Fund for a 2.2 billion dollar loan package spanning three years. A previous IMF program was suspended in 2024 after debt was misreported under the previous government. Lô mentioned that while the IMF agreement promises to revive the economy, it will require sacrifices and structural adjustment. The ministry of economy and finance also agreed to an enhanced common framework to restore debt sustainability, though the specific details of this framework remain unclear.

Reporting on the event differed in focus based on political lean. A center source framed the announcement as a general policy statement emphasizing the necessity of structural adjustment and economic sacrifice. A center right source focused on the specific financial figures of the arrears and the technical distinctions between debt reprofiling and restructuring.