Senegal Plans to Cut Budget Deficit Below IMF Forecast Next Year
Senegal is cutting spending next year as it seeks to restructure its debt and secure a new financing program from the International Monetary Fund.
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Senegal is cutting spending next year as it seeks to restructure its debt and secure a new financing program from the International Monetary Fund.
A top US Treasury official highlighted Dakar's case as an example of improvements in sovereign debt restructuring.
Dakar is seeking to emerge from a financial crisis triggered by the discovery of undeclared public debt incurred by the previous administration.
The G-20 Common Framework, a global toolkit to help poorer nations avoid chaotic defaults faces a fresh test in Senegal. Amid mounting debt strains, the nation plans to use an improved version of the framework to secure a fair distribution of relief across creditors in what will be seen as a key test of its effectiveness. Bloomberg's Matthew Hill reports from the annual IMF & World Bank meeting in Bangkok. (Source: Bloomberg)