The IMF won’t vote on Friday to give Senegal extra money.

Two sources close to the case informed Reuters that the International Monetary Fund is not planning to vote on a debt misreporting waiver on Friday that would let Senegal get more money. This is despite the fact that the issue was brought up at a board meeting.
The sources stated that the country has been waiting for the waiver since May, but it still needs to meet some requirements before the board can vote on it.
After Senegal’s newly elected officials found billions of dollars in undeclared debt, the IMF suspended the country’s previous $1.8 billion financing package. This debt has since grown to more than $11 billion. Senegal wants a waiver so that the IMF can give them more money through a new program.
Both sources claimed that talks on a waiver were proceeding well and that it would probably happen this year. But it still needs to be signed off on at a formal board meeting, which hasn’t been set up yet.
A representative for the IMF stated that the meeting on Friday was meant to “update Executive Directors on the situation in Senegal and the next steps of engagement, including the start of talks on a new Fund-supported program.”
“As part of the efforts to improve governance and openness, the government has promised to verify the final debt numbers, look into problems with public financial management, and work with the courts to track down transactions related to the false reporting.”
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A representative from Senegal’s finance ministry said they couldn’t comment.
On Thursday, the IMF said it would start official talks with Senegal this month over a fresh loan package. But Senegal can’t borrow any more money until the case of misreporting is settled. If they don’t get a waiver, they might have to pay back money from the last program.
The debt misreporting is one of the biggest that has ever been found during an active IMF monitoring program. The Fund has a list of things that Senegal needs to do before it can present the waiver to the board.
Sources say that one of them is agreeing on the terms of a new technical assistance audit that will look at how the government manages its money. However, the IMF doesn’t have to finish that audit before giving the waiver.