Senegal is at loggerheads with the International Monetary Fund (IMF) over a bailout it urgently needs to plug a gaping hole in its public finances. While the IMF wants the West African nation to undertake a painful restructuring before it will agree to a bailout, Senegal, which was recently downgraded to deep within “junk bond” status, is resisting this plan.
Earlier this month, credit rating agency S&P lowered Senegal to CCC+, citing the fragile country’s poor government finances. “Despite actions taken to boost growth and tax collection, the level of debt and size of the interest bill mean Senegal’s public finances remain precarious, particularly in the absence of a comprehensive official support programme,” S&P said on November 14.
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