Senegal will reprofile debt instead of restructuring, prime minister says

The International Monetary Fund and Senegal announced last week that they had reached a staff-level agreement

Diadie Ba and Anait Miridzhanian | Reuters News

Senegal’s Prime Minister Ahmadou Al Aminou Lo told parliament on Tuesday that the West African nation will not pursue a restructuring of its debt, opting instead to reprofile.

The International Monetary Fund and Senegal announced last week that they had reached a staff-level agreement for a $2.2 billion, three-year loan package. The previous lending programme was suspended in 2024 after the disclosure of misreported debt under the previous government.

Senegal’s Ministry ‌of Economy and Finance said at the time that it had agreed to an “enhanced common framework” to restore “debt sustainability”. It did not disclose what measures it would take.

“It is not a restructuring, it is reprofiling,” Lo said on Tuesday in remarks to lawmakers. “Reprofiling involves extending maturities and renegotiating interest rates.”

Lo added that roughly 30 mining agreements are currently being renegotiated.

Lo was appointed as prime minister in May, three days after President Bassirou Diomaye Faye dismissed the government led by Ousmane Sonko, a firebrand populist who had spoken out against debt restructuring and who is now speaker of parliament.

(Reporting by Diadie Ba and Anait Miridzhanian; Writing by AyenDeng Bior; Editing by Joe Bavier and Robbie Corey-Boulet)

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