Senegal’s Debt Crisis: Economist Amath Ndiaye Criticizes IMF’s Delayed Response

Macroeconomics Expert Warns of Growing Financial Strain as IMF Questions Audit Reports

Dakar, Senegal – Prominent economist Professor Amath Ndiaye has raised serious concerns about the International Monetary Fund’s (IMF) handling of Senegal’s debt crisis, accusing the global financial institution of unnecessarily delaying crucial financial support to the West African nation.

Controversy Over Debt Audit Reports

In an exclusive interview with TFM on July 7, Ndiaye, a macroeconomics specialist at Cheikh Anta Diop University’s Faculty of Economic and Management Sciences (Faseg), strongly criticized what he views as the IMF’s implicit rejection of Senegal’s Court of Auditors report.

“The decision to bring in international audit firm Mazars for another debt review essentially questions the validity of the Court of Auditors’ findings,” Ndiaye stated. “When the Court issues a report, it’s not merely an opinion—it carries the weight of law in our system.”

The economist revealed that all stakeholders, including the IMF, had initially accepted the Court’s report as the definitive assessment after the government submitted its figures. “Now suddenly we’re waiting for another report? How does one explain this reversal?” he questioned.

IMF’s Reliability Concerns

According to Ndiaye, while the IMF hasn’t openly challenged the Court’s audit, its Africa department director in London has expressed doubts about the accuracy of Senegal’s financial data. “They’re essentially saying they’re still waiting for Senegal’s ‘exact numbers,’ which creates unnecessary uncertainty in financial markets,” Ndiaye explained.

This bureaucratic delay comes at a critical moment for Senegal, which urgently needs an IMF agreement to secure affordable financing and stabilize its economic outlook.

Alarming Debt Servicing Ratios

Beyond the institutional disputes, Ndiaye confirmed Senegal faces a “very worrying” debt situation. The country currently spends 26% of its tax revenues—over 1 trillion CFA francs—just servicing debt interest payments, far exceeding IMF recommended thresholds of 20-22%.

“Imagine a household earning 100,000 francs but spending 25,000-26,000 just on loan interest,” Ndiaye illustrated. “What remains for food, education, healthcare? That’s precisely the government’s dilemma.”

Call for Urgent Action

Despite the complex situation, Ndiaye urged accelerated IMF engagement, criticizing the Fund’s slow response. “Morally, the IMF has no right to drag this out—the current administration isn’t fully responsible for the inherited debt crisis,” he argued.

The economist proposed implementing an IMF program while simultaneously addressing data discrepancies, rather than waiting for Mazars’ audit completion. While acknowledging the new government’s transparency efforts, Ndiaye warned against procedural delays: “An international auditor might prevent political interpretations, but we must move quickly—this shouldn’t block an IMF agreement.”

As Senegal navigates this financial crossroads, observers warn that prolonged uncertainty could undermine investor confidence and economic recovery efforts in one of West Africa’s most stable democracies.

For video coverage of Professor Ndiaye’s interview, visit: TFM’s discussion on Senegal’s IMF negotiations

Source: SenePlus