Senegal’s dollar bonds fall after audit reveals higher debt and deficit Reuters

NAIROBI (Reuters) – Senegal’s dollar-denominated sovereign bonds fell on Friday after a government audit revealed higher debt and deficit figures than the previous administration had reported, Tradeweb data showed.

The 2033 maturity was down 2.3 cents to bid 84.54 cents on the dollar by 0720 GMT, while the 2048 issue was down 2.42 cents.

The International Monetary Fund said the government had shared the report’s initial findings with the fund in Washington, adding that it welcomed the audit and was working with the government to determine appropriate next steps.

The audit ordered by the new government of President Bassirou Diomaye Faye showed that the deficit at the end of 2023 was more than 10 percent compared to about 5 percent reported by the previous government, Economy Minister Abdourahmane Sarr said late Thursday.

So Faye’s administration chose not to ask the IMF in July under its $1.8 billion three-year loan program, Sarr said, to avoid violating IMF rules.

Both sides are in discussions about the way forward, the government said.