Senegal opposition figure criticises debt-tackling mechanism

Senegal opposition figure criticises debt-tackling mechanism

Senegal's powerful opposition figure and parliamentary leader Ousmane Sonko on Monday denounced the mechanism the west African nation plans to use to address its staggering debt, predicting that the population would feel a heavy sting.

Senegal opposition figure criticises debt-tackling mechanism

Senegal is grappling with a total public-sector debt burden estimated at 132 percent of GDP at the end of 2024, a portion of which had been concealed by the previous administration under ex-president Macky Sall .

Last month the International Monetary Fund announced an agreement with Senegal on a new 36-month, $2.2 billion debt programme aimed at stabilising the country's public finances.

At the time, Senegal confirmed it would implement an "enhanced version" of what is known as the "G20 Common Framework".

The mechanism, introduced by the world's richest countries in 2020, is meant to help struggling nations cancel some of their debts under strict conditions.

"Senegal did not need to go to the G20 for a simple debt reprofiling exercise. It did not need to serve as a guinea pig for this G20 initiative", Sonko, who also serves as speaker of the National Assembly, told the press Monday.

He said the approach had imposed "conditionalities" on Senegal, which are apparent in the 2027 budget documents that President Bassirou Diomaye Faye has submitted to parliament, which is set to review them soon.

Sonko had served as Faye's prime minister but was dismissed in May following months of disagreement.

He said the budget proposals drastically cut social spending and investment, specifically citing education, employment, training and subsidies for electricity and petroleum products.

"This is an austerity budget designed to pay off debts that were hidden from the Senegalese people. We cannot accept it", he said, criticising the IMF as an "accomplice to the hidden debt".

He said the situation was unacceptable to his Pastef party, and that any deadlock would be the "sole responsibility" of the executive branch.

In early September following the agreement, Senegal's Prime Minister Ahmadou Al Aminou Mohamed Lo ruled out taking any "drastic adjustment" measures or negatively impact social sectors.

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