IMF Confirms Court of Auditors’ Findings, Reveals Hidden Debt of 4.585 Trillion CFA Francs ($7 Billion)

The International Monetary Fund (IMF) has confirmed the figures recently released by Senegal’s Court of Auditors. They reveal that a significant portion of the country’s debt, amounting to 4.585 trillion CFA francs ($7 Billion), was concealed under President Macky Sall’s administration.

Edward Gemayel, head of the IMF delegation, stated, “There was a very conscious decision to underestimate the debt stock. So we agree with the conclusion of the Court of Auditors’ report. “

The IMF explained that over the past five years, the government understated the national debt to maintain a favourable financial position, enabling Senegal to raise additional funds. Gemayel further elaborated, “There is an underestimation. We have a portion of the debt that was hidden, and this allowed the authorities to borrow more on the markets, to send a more positive signal to the financial markets, and also to borrow at more favourable rates than those rates would have been if the debt were higher.”

During Macky Sall’s final term in office, the IMF approved a 1.179 trillion CFA franc program. However, following the revelations by the Court of Auditors, the IMF suspended this program. In the coming weeks, the IMF will decide whether to approve a new agreement with the government of President Diomaye Faye or demand repayment of the amounts already disbursed under the previous administration.

Story by Seneweb.com