Senegal's hidden-debt crisis deepens as IMF talks stall and bonds crash
With debt near 132% of GDP and ~$13bn in undisclosed borrowing, Dakar resists an IMF-pushed restructuring after PM Sonko's ouster
Summary
Senegal entered 2026 in a deepening debt crisis after a 2024 audit revealed ~$13bn in undisclosed borrowing (about 25% of GDP) hidden by the prior administration; S&P cut the rating to "B-" and debt sits near 132% of GDP. The Imf has made new lending contingent on restructuring, which then-PM Ousmane Sonko long called a "disgrace," favouring domestic resources. President Faye dismissed Sonko on 22 May 2026, removing an obstacle but creating volatility. By late June, Sonko softened his stance. International bonds trade at distressed levels; the new technocrat PM declared a "state of emergency." Talks remain in limbo.
Why it matters
A West African economy with debt at 132% of GDP and distressed bonds is locked in a standoff with the IMF, testing the Fund's surveillance credibility and the cost of resisting restructuring.