Senegal Presses Creditors on Debt Restructuring as Repayment Costs Rise

Senegal has intensified discussions with international creditors as it seeks to reduce the pressure created by a rapidly rising public debt burden.

The International Monetary Fund estimated Senegal’s public debt at nearly 130% of gross domestic product in 2025. The country is also facing higher debt-servicing costs, which are projected to rise from CFA 4.435 trillion in 2025 to CFA 5.498 trillion in 2026, an increase of 24%.

Creditors appoint financial adviser

The United States called on October 15 for Senegal’s debt restructuring process to be completed within a year. On October 23, creditor banks appointed a financial adviser to support the negotiations.

The identities of the banks and the adviser have not been specified. No debt restructuring agreement has been reported, and the process remains under negotiation with international creditors.

The discussions are focused on easing repayment pressures while protecting public investment, businesses and household purchasing power.

IMF financing under consideration

A financing programme worth $2.2 billion with the IMF is also under consideration. The programme has not been described as approved.

The potential IMF support comes as Senegal confronts the projected increase in debt-service costs. Any restructuring agreement would be intended to ease the burden of repayments, although the available information does not set out the terms being discussed.

Senegal’s negotiations place the country’s debt position at the centre of efforts to manage public finances while maintaining economic activity. The call for a one-year timetable from the United States adds urgency to the process, while the appointment of a financial adviser marks a step by creditor banks in the ongoing discussions.