Press Release No. 20/129

IMF Staff completes Discussions for a US$221 Million Disbursement to Senegal in response to the COVID-19 Pandemic

April 1, 2020

• IMF staff completes discussions for emergency access to the Rapid Credit Facility and the Rapid Financing Instrument to help Senegal address the economic challenges posed by the pandemic.
• IMF Executive Board’s approval of the request by the Senegalese authorities will make available US$221 million to meet the urgent budgetary and balance of payments needs stemming from the COVID-19 pandemic. The Board’s consideration of the request is expected by mid-April.
• The government has taken strong measures to halt the community spread of the virus and is implementing a strategic plan to mitigate the economic and social impact of the pandemic.

IMF staff completed discussions with the authorities for a disbursement by mid-April of SDR 161.8 million (about US$221 million) of which two thirds or US$ 147.3 million under the Rapid Financing Instrument (RFI) and one third or US$ 73.6 million under the Rapid Credit Facility (RCF). This will allow the authorities to meet the urgent budgetary and balance of payment needs stemming from the deterioration of the global economic conditions and the spread of COVID-19 in Senegal. Senegal’s financing request will be considered by the IMF’s Executive Board by mid-April.

The COVID-19 pandemic has weakened the macroeconomic outlook for Senegal’s economy. Containment measures to avoid the propagation of the virus, lower external demand, reduced remittances, and the sudden stop of travel and tourism are having a significant impact on growth and generating an urgent balance-of-payments (BOP) need. The IMF will help preserve fiscal space for essential COVID-19-related health expenditures, while catalyzing additional donor support.

The authorities have taken strong actions to mitigate the impact of the pandemic by declaring a state of emergency, closing schools, suspending flights, banning public gatherings, and putting a curfew in place. They are implementing a comprehensive plan to upgrade the health system and contain the economic impact, including by setting up a national solidarity fund and providing targeted support to vulnerable households and firms.