Senegal’s new $2.2 billion IMF programme is facing political resistance as lawmakers question the country’s growing reliance on the international lender.
Prime Minister Ahmadou Al Aminou Mohamed Lo defended the three-year programme during a debate in the National Assembly on Tuesday.
The debate comes as Senegal works to manage mounting financial pressure and restructure parts of its debt.
Senegal IMF deal comes under scrutiny
Lawmakers opposed to President Bassirou Diomaye Faye’s Kiiray party criticised the government’s agreement with the International Monetary Fund.
MP Guy Marius Sagna argued that the programme would leave Senegal too dependent on the IMF.
Lo defended working with the institution.
He said the IMF plays an important role in assessing a country’s economic direction and whether its debt remains sustainable.
Senegal faces billions in payment arrears
The debate comes at a difficult time for Senegal’s finances.
The country faces around $3.5 billion in payment arrears, according to figures cited during the parliamentary debate.
Lo said the IMF agreement would help Senegal reprofile its debt.
This could include extending repayment periods and renegotiating interest rates.
Senegal is also renegotiating around 30 mining contracts.
Political tensions surround economic policy
The IMF programme has also become part of a wider political debate in Senegal.
President Faye and former prime minister Ousmane Sonko, who now serves as National Assembly speaker, have disagreed over several issues, including the IMF programme.
The debate highlights the challenge facing Senegal as the government tries to stabilise public finances while responding to concerns over debt and economic sovereignty.