The IMF has backed up claims that former Senegalese President Macky Sall hid about $7 billion in public debt from 2019 to 2024. An audit ordered by the recently elected government uncovered this deception. APA News reported the IMF's confirmation, which supports what President Bassirou Diomaye Faye said right after he took power.
The IMF put its $1.8 billion loan to Senegal on hold last year because of these financial problems. The new leaders must fix how the country reports its finances before they restart the loan program. Edward Gemayel, who heads the IMF team for Senegal, agreed with what Senegal's Court of Auditors found in their investigation.
The Court discovered that Sall's team made the national debt look smaller than it really was. The actual debt compared to the country's yearly output reached almost 100%, far above the 70% they claimed publicly. This trick let Senegal borrow money from international lenders at better rates and fooled investors worldwide.
The release of these findings has heated politics in Dakar. People who oppose the current government say President Faye and Prime Minister Ousmane Sonko just want to make the previous administration look bad. But the IMF publicly supports how the new leaders want to be honest about finances and change how things work.
The Court of Auditors also found the budget shortfall for 2023 was much bigger than reported at 12.3% instead of 4.9% of the country's output. This has made people worry more about whether Senegal can pay its bills. Both Moody's and Standard & Poor's have lowered Senegal's credit score, making the new government's plans to fix the economy more difficult.
Justice Minister Ousmane Diagne says police are investigating former government officials who may have stolen money or washed illegal cash. The new administration's efforts to combat corruption are broader.
The IMF put its $1.8 billion loan to Senegal on hold last year because of these financial problems. The new leaders must fix how the country reports its finances before they restart the loan program. Edward Gemayel, who heads the IMF team for Senegal, agreed with what Senegal's Court of Auditors found in their investigation.
The Court discovered that Sall's team made the national debt look smaller than it really was. The actual debt compared to the country's yearly output reached almost 100%, far above the 70% they claimed publicly. This trick let Senegal borrow money from international lenders at better rates and fooled investors worldwide.
The release of these findings has heated politics in Dakar. People who oppose the current government say President Faye and Prime Minister Ousmane Sonko just want to make the previous administration look bad. But the IMF publicly supports how the new leaders want to be honest about finances and change how things work.
The Court of Auditors also found the budget shortfall for 2023 was much bigger than reported at 12.3% instead of 4.9% of the country's output. This has made people worry more about whether Senegal can pay its bills. Both Moody's and Standard & Poor's have lowered Senegal's credit score, making the new government's plans to fix the economy more difficult.
Justice Minister Ousmane Diagne says police are investigating former government officials who may have stolen money or washed illegal cash. The new administration's efforts to combat corruption are broader.
