The International Monetary Fund (IMF) has welcomed Senegal’s plan to boost tax compliance and reduce reliance on external financing, though it confirmed this wouldn’t affect an ongoing misreporting case.
Senegal, currently without disbursements from its $1.8 billion IMF program due to misreporting debt and deficit levels, has reportedly found it can manage its economy without external aid.
An IMF spokesperson stated that while Senegal’s ambition to fund expenditures internally is positive, it doesn’t directly impact the misreporting resolution.
The Fund remains committed to quickly resolving the case.
Senegal’s Prime Minister Ousmane Sonko stated the government will ensure fair tax payments to avoid tax increases.
Revelations of hidden debt have severely impacted Senegal’s assets, making its dollar bonds the worst African performers this year and forcing increased regional borrowing, drawing opposition criticism for lack of transparency.
