The International Monetary Fund approved a one-year, USD 75.6 million aid package for Senegal in order to help offset the impact of skyrocketing food and energy prices.
"The Senegalese economy is facing a difficult period. Economic growth has slowed significantly, as a result of government payment delays to the private sector and the effect on consumption of high food and energy prices," IMF Deputy Managing Director and Chairman Murilo Portugal said on Friday in a statement announcing the aid.
Earlier this year, the IMF warned that the situation with Senegal's budget was "very difficult" because of unpaid bills to the private sector totaling some 150 billion CFA francs (335 million dollars), over 10 per cent of the national budget.
Under the aid package, Senegal will be able to immediately draw 24.27 million Special Drawing Rights (SDR) -- the unit of value used by the IMF in its financial transactions -- or approximately USD 37.8 million, and an equal amount after completing the first review under the country's arrangement with the IMF.
That aid scheme, the Policy Support Instrument (PSI), aims to consolidate macroeconomic stability, increase the country's growth potential, and reduce poverty.
The IMF's Executive Board also granted three waivers to Senegal, which had violated the terms of a previous agreement with the international body, after corrective government action. Senegal had provided "inaccurate information" on its fiscal deficit and budgetary float.
"In light of the substantial corrective measures that the authorities have taken and the improved fiscal monitoring systems they are committed to implementing, the Board decided to maintain a positive assessment of Senegal's program performance," Portugal said.