Senegal: Controversy surrounding a hidden $7 billion debt

The International Monetary Fund (IMF) has confirmed that Senegal’s previous administration concealed part of the country’s debt, estimated at 7 billion dollars. This revelation has provoked strong reactions and raises the question of who is responsible for this situation.

The IMF points to ‘serious shortcomings in budgetary control and accountability’, as well as ‘misrepresentations’ concerning the country’s indebtedness. Faced with this crisis, the institution is demanding corrective measures before any new loans are granted, including a reduction in energy subsidies, a decision that is causing social concern.

To avoid a sudden economic shock, the Senegalese government hopes to negotiate a waiver so that it does not have to repay the IMF immediately and can borrow again. The financial institution has welcomed the authorities’ commitment to greater transparency, but is making any future aid conditional on the implementation of structural reforms.

source: Jeune Afrique