Senegal has paid €380 million to holders of eurobonds maturing in 2028, along with $33 million for dollar-denominated bonds due in 2048, in a move aimed at maintaining investor confidence and preventing a potential sovereign default.
The early payment helps Dakar avoid a credit rating downgrade, as the country deals with the fallout from $7 billion in previously undisclosed debt revealed in September 2024. The discovery has placed significant financial pressure on the government of President Bassirou Diomaye Faye.
Following the revelation, the International Monetary Fund (IMF) suspended its financial assistance programme for Senegal, complicating the country’s access to international financial markets.
In response, authorities say they are implementing strict fiscal reforms to stabilise public finances, including budget cuts, increased tax revenues and measures to support economic growth.
As part of these efforts, the government plans to close 19 public agencies, a reform expected to eliminate around 1,000 jobs and generate at least $98 million in savings.
Source: Newstimehub
