Senegal, like many African countries, faces a sovereign debt crisis exacerbated by the Covid-19 pandemic, the war in Ukraine and the tightening of global financial conditions. With a rising level of indebtedness and persistent budgetary challenges, the country must find innovative solutions to avoid a default while reviving growth. Among the paths envisaged, the “monetization of debt” (or “direct monetization”) emerges as an audacious alternative, although controversial. This strategy, combined with debt reprofiling measures and a return to fiscal orthodoxy, could allow Senegal to return to a sustainable macroeconomic trajectory. This contribution explores this option on the basis of recent IMF analyses, criticisms of the underestimation of the Senegalese debt, and alternative strategies for reducing risk-pays and stimulating sustainable growth. 1. the Le Sénégal face à une crise de dette souveraine: diagnostic and challenges to be faced by the Senegalese government in the face of a sovereign debt crisis. * a) A underestimated debt and persistent macroeconomic imbalances *
The monetisation of the Senegalese debt: a way out of the crisis to restore macroeconomic viability?
