Ousmane Sonko criticizes G20 debt restructuring plan

Ousmane Sonko, president of Senegal’s National Assembly and former prime minister, is opposing the use of the G20 mechanism to restructure the country’s public debt. He argues that the initiative poses risks and has warned he may not support the finance bill if the government continues with this approach.

Senegal’s debt situation and the G20 mechanism

Senegal is considering an “enhanced” version of the Common Framework, a 2020 initiative designed to help countries in debt distress restructure their obligations. However, critics point out that the process is slow and often involves disputes among creditors about how to share the burden.

Sonko argues against using the G20 mechanism

Sonko claims that Senegal does not need the G20 mechanism for a basic debt restructuring. He says creditors have already ruled out changing the amounts owed. He also expressed concern that Senegal is being used as the first test case for the G20 initiative, even though the country is facing financial challenges.

Threat of parliamentary opposition

Sonko has warned that his parliamentary group may refuse to approve the finance bill if the government persists with the current strategy. He emphasized that he does not want to hinder progress but believes any resulting blockage would be the government’s responsibility.

Senegal’s public debt and recent IMF deal

At the end of 2024, Senegal’s public debt reached 132 percent of its gross domestic product (GDP). Part of this debt had been hidden during the presidency of Macky Sall, who led the country from 2012 to 2024. In September 2024, Senegal signed a three-year agreement with the International Monetary Fund (IMF) for $2.2 billion in support to improve its public finances.