Senegal will have to wait until June to decide on its loan program with the International Monetary Fund which could lead to a new allocation of funds.
The Finance Ministry did not immediately comment on the possibility of a delay, which could be an attempt by the government to quickly find aid to help it deal with its financial crisis.
A $1.9 billion IMF plan approved in June 2023 was suspended three months later by the government as it investigated after it found that debts and a budget deficit would be larger than those announced by the previous government and would cause the West African country’s dollar to increase and lead to credit downgrades. measured.
Dhaka is looking for a new job at the IMF, but sources say the IMF will not even consider the request until the review results are released. An audit by Senegal’s Court of Accounts followed.
- Advertisement -
“They need to find solutions to the problems identified in the preliminary review,” the source said. After certification, the fund’s board of directors must decide on the next steps to resolve the issue, a process that could take another six months.
Senegal’s finance ministry did not immediately respond to a request for comment.
Senegal received $1.526 billion last June under the International Monetary Fund’s three-year Deferred Funding Facility and Deferred Credit Facility, as well as an additional $371.1 million in financing from the Resilience and Sustainable Development Fund to secure a long-term cash discount.
Senegal received $216 million when it signed a loan agreement with the International Monetary Fund, and added $279 million last December after the board approved the first.
The latest IMF board review, which led to the review and increased spending, has not yet been completed.
- Advertisement -
The sources said the IMF board should consider various remedies for the misrepresentation, including having to repay a loan increase based on false information.
Senegal was already facing slower-than-expected growth and fiscal deficits even before the debt and deficit were disclosed.
