Senegal's Hidden Debt Crisis: A Timeline of Fallout and IMF Talks
A timeline of Senegal's debt crisis, from hidden borrowing revelations to IMF negotiations and a 2026 staff-level agreement.
Senegal's financial troubles came to light in 2024 when the new administration uncovered billions of dollars in debt hidden by its predecessor. The revelation triggered a prolonged fiscal crisis, credit downgrades, and tense negotiations with the International Monetary Fund (IMF). Here is how the situation evolved:
2024: Discovery and Downgrade
In March 2024, opposition candidate Bassirou Diomaye Faye, a former tax inspector, won the presidential election. By September, Prime Minister Ousmane Sonko accused the previous government of Macky Sall of falsifying figures. The following month, Moody's downgraded Senegal's rating, and an IMF mission suspended a $1.8 billion credit facility to assess the revised data.
2025: Audits and Downgrades
In February 2025, the Court of Auditors confirmed that end-2023 debt was 99.7% of GDP, not the previously reported 74.41%, implying roughly $7 billion in hidden borrowing. The IMF said new programme talks could not proceed until the misreporting was addressed. By July, S&P Global Ratings downgraded the country to 'B-', estimating hidden debts at around $13 billion. In November, an IMF mission ended without a new programme, and S&P cut the rating further to 'CCC+'. Prime Minister Sonko rejected restructuring as a 'disgrace'.
2026: Deal and Political Shift
Negotiations continued into 2026. In March, Senegal made $480 million in bond payments. By May, the finance minister warned the fuel subsidy bill could exceed its budget by up to $2 billion. President Faye then sacked Sonko, dissolved the government, and appointed economist Ahmadou Al Aminou Lo as prime minister. Sonko was subsequently elected speaker of parliament.
In September 2026, the IMF and Senegal reached a staff-level agreement for a three-year, $2.2 billion loan package. The deal, subject to Executive Board approval, requires Senegal to seek debt treatment to restore sustainability.