Senegal has reached an initial agreement with the International Monetary Fund (IMF) for a financial support package totaling 1.8 billion euros over three years. This funding will come through the IMF’s Extended Credit Facility (ECF), a program designed to assist low-income countries with medium-term financial needs, typically without interest charges. The agreement still needs approval from the IMF’s executive board and requires Senegal to implement specific economic adjustments, particularly in managing its external debt, which reached 132% of the country’s GDP at the end of 2024. Senegal’s financial difficulties have been partly attributed to a hidden debt of $7 billion (6 billion euros) accumulated during the tenure of former President Macky Sall, who was defeated in the 2024 elections by Bassirou Diomaye Faye. This debt was not disclosed publicly and led to a drop in Senegal’s credit rating by global rating agencies. As a result, international donors became hesitant to provide support, forcing the government to seek high-interest loans from other financial markets, further complicating the economic situation. According to Finance Minister Cheikh Diba, addressing the debt is crucial for reducing pressure on the national budget, restoring the government’s financial flexibility, and ensuring the ability to fund key national priorities. However, he did not mention the possibility of restructuring the economy, a measure that has been historically avoided by Senegal’s government. The agreement is expected to include austerity measures such as improving budget management, increasing oversight of unpaid government obligations, enhancing monitoring of state-owned companies, and revising energy subsidies to reduce public spending. The deal with the IMF is also anticipated to facilitate funding from other international institutions, including the World Bank and the African Development Bank (AfDB), which may provide additional support to help Senegal stabilize its economy and implement necessary reforms. The success of this agreement will depend on the government’s ability to carry out the required reforms and gain the necessary approvals from the IMF and other stakeholders.