Senegal seeks to extend debt maturity toward IMF program

Senegal’s prime minister said the country wants to extend the maturity of its borrowing as it seeks to qualify for an International Monetary Fund program. The plan also includes renegotiating interest rates, but would not reduce the overall debt load. 5 billion in arrears to avoid stalling economic activity and triggering job losses. 2 billion loan package, pending final approval.

The country’s finances have been under strain since the previous government failed to disclose billions in loans, pushing debt above 130% of GDP and prompting Senegal to ask the IMF to suspend an earlier program. The debt crisis has added to political turmoil, with President Bassirou Diomaye Faye splitting with longtime ally Ousmane Sonko this year, partly over how to handle the debt.