Senegal has transferred €380 million to holders of eurobonds maturing in 2028, along with $33 million for dollar-denominated bonds due in 2048, in a move aimed at maintaining investor confidence and avoiding a potential sovereign default.
The early repayment allows Dakar to prevent a credit rating downgrade, at a time when the country is grappling with the impact of $7 billion in previously undisclosed debt revealed in September 2024. The revelation has placed significant pressure on the government of President Bassirou Diomaye Faye.
Following the discovery of the hidden debt, the International Monetary Fund (IMF) suspended its financial support programme for Senegal, complicating the country’s access to international financial markets.
In response, authorities say they are implementing strict fiscal measures to stabilize public finances. The government expects budget cuts, increased tax revenues and economic growth to help restore financial stability.
As part of these measures, Senegal plans to close 19 government agencies, a reform expected to eliminate around 1,000 jobs and generate at least $98 million in savings.
Source: AfricaNews
