Senegalese President Bassir Diomaye Faye met with World Bank President Ajay Banga as the West African country advances plans to reprofile its debt under an 'enhanced' version of the G20 Common Framework.
In a post on the social media platform X, Faye stated that the World Bank confirmed its support for Senegal's sustainable public finance policies. He also noted that youth employment was a focus during discussions, which he called a priority task.
Ajay Banga told Reuters that he intends to discuss methods to accelerate Senegal's case, drawing on the experience of previous debt service procedures under this framework. Banga emphasized: 'We will discuss how we can help ensure its case proceeds through the G20 Common Framework at the fastest speed among all previous cases.'
G20 members have implemented measures to improve the debt servicing process and reduce the time required to complete restructurings, learning from past experiences. For instance, Zambia's restructuring took over a year, while Ghana's was completed in just over a year.
The Common Framework was launched in 2020 during the COVID-19 pandemic to assist low-income countries in addressing unsustainable debt. Subsequently, the World Bank, IMF, and the G20 Presidency established the Global Debt Council, bringing together debtor nations and creditors to address debt restructuring issues.
Senegal announced that it will use the 'enhanced' version of the G20 framework this month to restore debt sustainability, excluding borrowings denominated in the CFA regional franc. The government describes its approach as debt reprofiling, which includes measures such as extending repayment periods and revising interest rates, rather than traditional restructuring.
This statement followed an agreement reached at the staff level with the IMF on a three-year financing program worth $2.2 billion.
