Senegal has initiated the transfer process for a coupon payment on its 2048 U.S. dollar bond, scheduled for September 13, according to an announcement by the economy ministry.
The move follows a staff-level agreement reached earlier in the week with the International Monetary Fund (IMF) for a $2.2 billion, three-year loan package. Alioune Diouf, head of the capital markets department in the economy ministry, stated that authorities remain committed to meeting debt obligations without suspension.
"Under this agreement, you haven't heard the authorities mention any debt service suspensions... We will do our utmost to fulfill our commitments," Diouf said. The statement underscores the government's intent to maintain debt service despite fiscal challenges.
Senegal's international bonds strengthened after the announcement. Tradeweb data showed the 2048 bond rising by 2.5 cents to bid at 51.47 cents on the dollar. The improvement reflects investor confidence tied to the IMF arrangement.
The country's debt burden reached 132% of GDP by the end of 2024, according to IMF figures, highlighting the strain on public finances. The current administration has also disclosed that the previous government misreported billions of dollars in borrowing, adding to fiscal transparency concerns.
