The degradation of the Senegalese note by Moody’s is a fait actuellement débat. The banker and specialist in international law, Mouhamadou Madana Kane, who is also president of the Dundu party, gave his opinion on the situation. “Senegal is neither in a situation of debt restructuring nor of default. The rate of deterioration of its sovereign rating, which Moody’s has just downgraded to Caa1 with a negative outlook, follows the same trend as that of countries already in default or in a situation of restructuring. In other words, the Sénégal is suffering the same effects as the countries in a more serious situation”, underlines the former patron of the Banque islamique du Sénégal. Faced with such a situation, M. Kane made a suggestion to the authorities of the country. Since the choice so far, not to restructure the debt, is not payable in view of the continued degradation of the rating, “Senegal should not resolve courageously to restructure/reprofile this debt to at least reap the benefits in terms of reducing liquidity pressures and restoring budgetary margins of manoeuvre”, he asks. For him, it might be necessary to think seriously about reducing the damage.
This is the first time that the European Commission has been asked to present a report on the situation in the euro area.
