IMF reaches loan agreements over $1.8bln with Senegal

The International Monetary Fund (IMF) on Thursday had reached an agreement with Senegal over loan facilities totaling $1.9 billion.

The agreement is pending upon being approved by the IMF executive board, which is due to vote on it in mid-June.

The majority of the funds come from a brand-new, 36-month financing agreement covered by a $1.5 billion Extended Fund Facility and Extended Credit Facility, with Senegal agreeing to a range of fiscal and governance reforms.

“An arrangement worth roughly $1.5 billion will support the authorities’ efforts to safeguard debt sustainability and rebuild depleted buffers,” said IMF Senegal mission chief, Edward Gemayel.

Gemayel added that “the goal will also require further revenue mobilisation, including streamlining tax exemptions, and phasing out regressive and elevated energy subsidies.”

“A separate IMF loan agreement worth nearly $330 million will focus on climate mitigation and adaptation measures, and on integrating climate-related considerations into budget preparation, execution, and monitoring,” Gemayel added.

Priorities for policy under that arrangement are expected to be to deliver job-rich economic development, strengthen frameworks for combating money laundering and reduce debt risks through fiscal consolidation.