Senegal’s Dollar Bonds Decline After Audit Exposes Increased Debt and Deficit, Reports Reuters

Senegal’s Sovereign Dollar Bonds Decline Amid Debt Audit Findings

NAIROBI (Reuters) – Senegal’s sovereign dollar bonds experienced a decrease on Friday following the release of a government audit that disclosed larger debt and deficit figures than those reported by the previous administration, according to Tradeweb data.

The bond maturing in 2033 saw a drop of 2.3 cents, bidding at 84.54 cents on the dollar by 0720 GMT, while the 2048 bond declined by 2.42 cents.

The International Monetary Fund (IMF) noted that the government had shared initial audit findings with its Washington office. The IMF welcomed the audit and is collaborating with the government to identify appropriate next steps.

The audit, initiated by the new administration of President Bassirou Diomaye Faye, indicated that the deficit at the end of 2023 exceeded 10%, in contrast to approximately 5% as reported by the former government, as stated by Economy Minister Abdourahmane Sarr on Thursday.

Sarr further revealed that Faye’s administration decided against requesting a disbursement from the IMF in July under its $1.8 billion, three-year lending program to ensure compliance with IMF regulations.

Both the Senegalese government and the IMF are currently engaged in discussions regarding the path forward.