Senegal Makes Early Eurobond Payments to Avoid Default

Government adopts strict fiscal reforms after $7 billion hidden debt crisis disrupts IMF support. Senegal has paid €380 million to holders of eurobonds due in 2028 , along with $33 million for dollar-denominated bonds maturing in 2048 , in a move aimed at preserving investor confidence and avoiding a potential sovereign default. The early repayment allows Dakar to prevent a possible downgrade of its credit rating , as the country faces mounting financial pressure following the revelation of $7 billion in previously undisclosed debt in September 2024 . The discovery has placed significant strain on the administration of President Bassirou Diomaye Faye . After the hidden debt came to light, the International Monetary Fund (IMF) suspended its financial assistance programme with Senegal, complicating the country’s access to international financial markets . In response, authorities say they are implementing strict fiscal measures to restore financial stability , including budget cuts, higher tax revenues and efforts to sustain economic growth. As part of these reforms, the government plans to close 19 public agencies , a move expected to eliminate around 1,000 jobs and generate at least $98 million in savings . Source: Newstimehub