World Bank's Banga to Meet Senegal's Faye on Faster G20 Debt Restructuring

World Bank President Ajay Banga is set to meet Senegalese President Bassirou Diomaye Faye on Monday to discuss the West African nation's plans to restructure its debt under the Group of 20 Common Framework.

Speaking ahead of the meeting, Banga said the discussions would centre on how the World Bank can help Senegal's case move through the framework more quickly than previous ones. He noted that G20 members have worked to reform the debt treatment process and shorten the timeline for completing restructurings, and said Senegal should be able to draw on that accumulated experience.

The G20 Common Framework was launched in 2020 during the COVID-19 pandemic to help the poorest countries reorganise their debt, but reaching agreements has often been slow. Zambia's case took well over a year to resolve, while Ghana's was completed in just over a year.

To address the delays, the World Bank, the International Monetary Fund and G20 members established the Global Sovereign Debt Roundtable, which brings together borrowers and private-sector participants to work through obstacles that had complicated the process. A debt restructuring playbook has also been issued to map out the steps and improve transparency.

Senegal said this month that it would use an "enhanced" version of the G20 framework to reorganise its debt, excluding borrowings denominated in the regional CFA franc currency. The move follows a staff-level agreement with the IMF on a $2.2 billion, three-year loan programme.

During his visit to Washington, Faye is also due to meet U.S. Treasury Secretary Scott Bessent and IMF Managing Director Kristalina Georgieva. Banga said the Senegalese president appeared focused on taking the necessary steps, adding that the outcome would become clear in time.