Senegal, IMF Reach Staff Agreement on $2.2 Billion Loan Program

Senegal and the IMF reached a preliminary agreement to restart an IMF lending program, two years after funding was frozen when previously hidden loans totaling billions of dollars were discovered. The resumption of support should improve Senegal’s external financing outlook and near-term liquidity conditions. While details of the program aren’t provided, the deal is a meaningful positive development for sovereign risk sentiment.