Senegal to Reprofile Debt, Not Restructure, PM Tells Parliament
Senegal will reprofile its debt by extending maturities and renegotiating rates, PM Lo told parliament, avoiding a formal restructuring.
Senegal's Prime Minister Ahmadou Al Aminou Lo told parliament on Tuesday that the West African nation will not pursue a formal restructuring of its debt, opting instead for a reprofiling strategy.
"It is not a restructuring, it is reprofiling," Lo said in remarks to lawmakers. "Reprofiling involves extending maturities and renegotiating interest rates."
The statement comes a week after Senegal and the International Monetary Fund (IMF) announced a staff-level agreement for a $2.2 billion, three-year loan package. The previous lending programme was suspended in 2024 following the disclosure of misreported debt under the prior government.
Senegal's Ministry of Economy and Finance had earlier said it agreed to an "enhanced common framework" to restore "debt sustainability," without specifying the measures to be taken.
Lo also told parliament that approximately 30 mining agreements are currently being renegotiated.
Lo was appointed prime minister in May, three days after President Bassirou Diomaye Faye dismissed the government led by Ousmane Sonko, a firebrand populist who had opposed debt restructuring and now serves as speaker of parliament.