Senegal’s Prime Minister Ousmane Sonko insisted Thursday that the country’s debt remains “sustainable” amid growing economic concerns.
The West African nation faces a budget deficit approaching 14 percent of GDP and public sector debt at 132 percent of national output.
Sonko blamed the former administration of ex-president Macky Sall for concealing the true extent of Senegal’s financial difficulties.
In 2023, the International Monetary Fund had agreed to a $1.8 billion aid programme, now suspended pending new commitments from Senegal’s government.
After IMF officials visited Senegal several times, the institution and the government opened negotiations in mid-October for a fresh aid package.
“We all know the situation we inherited has put us in difficulty, but it is a situation that must be managed,” Sonko said.
The prime minister described a recovery plan already underway, warning it would demand effort and some sacrifice from the population.
Senegalese experts have suggested debt restructuring to ease public finances, but Sonko dismissed it as “a disgrace” and equivalent to “bankruptcy.”
“Our growth and revenue projections are reasonable. We cannot understand why anyone would want to impose restructuring on us,” he added.
Debt restructuring would allow Senegal to adjust repayment terms, including extending deadlines or cancelling part of the principal or interest.
Sonko’s firm stance signals that Senegal intends to manage its debt independently while negotiating with international lenders for support.