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A Strategic Compass for Navigating Senegal's Debt Crisis

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  • Ndiaye, Abdoulaye
  • Kessler, Martin

Abstract

With public debt at around 130% of GDP, Senegal'92s options are limited: there are no good solutions. This paper reviews the constraints and difficult choices the government faces in managing the debt crisis. We explore two possible paths. In the first approach, the government seeks to avoid restructuring at all costs. In the second approach, the government aims to negotiate with its bilateral and private external creditors to restructure its debt under an IMF program. We argue that while there are considerable pressures to repay, the economic literature teaches us that the costs of delaying a restructuring are higher.

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  • Ndiaye, Abdoulaye & Kessler, Martin, 2026. "A Strategic Compass for Navigating Senegal's Debt Crisis," FDL Policy Notes 2601, CEPREMAP.
    • Handle: RePEc:cpm:notfdl:2601
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