Senegal: debt, IMF, financial credibility… Dakar tries to regain control

Senegal has made an early redemption of two sovereign bonds before their due date, according to information from Bloomberg published on Sunday, June 7, 2026. The state paid a coupon of 53.75 million euros on a bond denominated in euros maturing in 2037, and 38.8 million dollars on a dollar bond maturing in 2031, which amounts to approximately 35.2 and 35.5 million euros respectively at the current exchange rate. Both payments were made before their scheduled due date during the week of June 8.

These early repayments come just eight days before the arrival of an IMF technical mission in Dakar. Julie Kozack, director of the institution’s communications department, announced on June 4 that a team would be dispatched to Senegal during the week of June 15. According to her, the discussions aim to “reach a common understanding of the macroeconomic outlook, Senegal’s financing needs, and its reform priorities,” and should address the issue of “Senegal’s debt vulnerability.”

For financial observers, the early payment serves as a signal to the markets and international creditors at a time when Senegal is seeking to restore its financial credibility after a period of turbulence. The meeting in Nairobi, on the sidelines of the Africa Forward summit, between President Bassirou Diomaye Faye and IMF Managing Director Kristalina Georgieva had already clarified “many gray areas” regarding the financial instruments being considered, according to Finance Minister Cheikh Diba.

An undeclared debt case pending closure

Senegal is seeking to reconnect with IMF funding after the suspension in 2024 of a 1.8 billion dollar program. This suspension followed the revelation of undeclared financial commitments, termed “hidden debt,” accumulated between 2019 and 2024 under Macky Sall’s administration and estimated at around 7 billion dollars by the new authorities. Former Prime Minister Ousmane Sonko had made the denunciation of this debt one of the political hallmarks of his tenure.

To secure a new financing program, Senegal must obtain a waiver from the IMF Board of Directors regarding “misreporting” – the term used for erroneous economic data transmitted to the institution by the previous government. According to Reuters information cited by EmediaSN, the board is not expected to decide on this waiver in the upcoming meetings. However, exchanges between Dakar and the IMF are described as progressing “in a climate deemed positive” by sources close to the matter.

A new government faces its first meeting with creditors

The mission on June 15 will be the first contact between the IMF and the government formed on June 1 by Prime Minister Ahmadou Al Aminou Lô, following a cabinet reshuffle that excluded Pastef from the executive. The question of the new government’s posture towards potential agreement conditions with the institution remains open. Sonko had indicated to the presidency of the National Assembly that neither he nor Cheikh Diba had committed to a debt restructuring, stating that they remained “attentive to the evolution of the case.”

Senegal also raised 100 billion CFA francs in Treasury bonds in March 2026 and planned to raise 658 billion CFA francs – roughly 1 billion euros – on regional financial markets in the second quarter, according to information published by Senego in April. These domestic and regional funding operations have been the preferred alternative for the Senegalese Treasury to meet its obligations in the absence of an active IMF program.