Senegal and the Washington-based International Monetary Fund have struck a staff-level agreement for a $2.2 billion financing program that would run over three years, the IMF said in a statement on Tuesday. The proposed arrangement, if approved by IMF management and its Executive Board, would restart lending to the West African country after a two-year halt prompted by the revelation of billions of dollars in undisclosed debt.
Under the terms outlined by the IMF, the 36-month program would be delivered through the Extended Credit Facility and amounts to 475 percent of Senegal's quota. The fund made clear that the staff-level agreement is subject to formal approval by IMF Management and the Executive Board, and that it depends on decisive corrective actions by Senegalese authorities to support their request for a waiver in the misreporting case before Executive Board consideration.
In a separate release, the Senegalese government said it intends to employ an improved version of the G20 Common Framework to restructure its debt. That plan was referenced alongside the IMF agreement as part of the country�s strategy to normalize its financing after the shock of the previously undisclosed liabilities.
The staff-level accord follows months of intensive negotiations after the 2024 discovery of hidden loans led the IMF to suspend a prior $1.8 billion facility. The suspension effectively froze IMF lending and curtailed Senegal's access to international capital markets, forcing the government to rely on regional and structured financing arrangements, including the use of total-return swaps, to cover funding needs.
Economic data cited in IMF commentary show Senegal's economy expanded by 6.7 percent in 2025 as national oil production entered its first full year. Despite the overall expansion, non-hydrocarbon GDP growth slowed to 2.2 percent that year. More recent figures indicate a pickup in non-hydrocarbon activity, with year-on-year growth of 4.7 percent recorded in the first quarter of 2026, supported by robust private consumption.
The staff-level agreement represents a significant step toward restoring traditional multilateral financing for Senegal, but it leaves key hurdles in place. Final approval by IMF decision-makers and demonstrable corrective measures on reporting and debt management will be required before disbursements can proceed.
Key data:
- Program size: $2.2 billion over 36 months under the Extended Credit Facility.
- Program scale: 475 percent of Senegal's IMF quota.
- Prior suspension: 2024 discovery of undisclosed debt led to a suspended $1.8 billion IMF facility.
- Economic performance: 6.7 percent GDP growth in 2025; non-hydrocarbon growth 2.2 percent in 2025 and 4.7 percent year-on-year in Q1 2026.