Senegal in Talks with IMF Over Discrepancies in Debt Reporting

DAKAR (Reuters) – Senegal is currently discussing corrective measures with the International Monetary Fund (IMF) after an audit exposed significantly higher debt and budget deficits than previously reported by the former administration. Economy Minister Abdourahmane Sarr announced this development on Thursday.

The audit, commissioned by newly elected President Bassirou Diomaye Faye, revealed that the deficit at the end of 2023 was over 10%, in stark contrast to the approximately 5% reported by the previous government.

Senegal’s Prime Minister Ousmane Sonko accused the former authorities of deceiving the country and its partners, alleging that they falsified financial figures during a press conference on Thursday.

Faye, who came to power in April following a significant election victory fueled by public dissatisfaction with former President Macky Sall’s administration, pledged to investigate his predecessor’s financial management.

Due to the inaccurate figures reported by the prior administration, Sarr indicated that Faye’s government opted not to submit Senegal’s request for an IMF disbursement in July after the fund’s review in June. The IMF had previously approved a three-year $1.8 billion credit facility in June 2022, with disbursements anticipated after the review.

Sarr emphasized that engaging with the IMF based on inaccurate information would have resulted in misreporting. Consequently, any disbursement from the IMF based on these misleading figures would require reimbursement and necessitate corrective actions.

He stated, “The IMF has been informed, and Senegal is in discussions about corrective measures to be taken, either regarding the current IMF programme or a separately negotiated plan with the IMF as soon as possible.”

The IMF has not yet responded to requests for comments.