2023-06-28 05:59:01
Dakar, June 27 (APS) – The European Union (EU) and the International Monetary Fund (IMF) have granted Senegal financing of 1.115 billion CFA francs for the execution, for three years, of new programs of development, APS learned on Tuesday from these two economic and financial partners of the State.
The announcement was made during a meeting devoted to the Senegalese macroeconomic situation, which was attended by the Minister of Finance and Budget, Mamadou Moustapha Ba, the EU Ambassador to Senegal, Jean-Marc Pisani, and IMF representative in Dakar, Cémile Sancak.
“In the case of Senegal, these additional resources contribute to the financing of new IMF programs, which have just been adopted and will provide access to approximately 1,850 million US dollars (i.e. approximately 1,115 billion CFA francs) to Senegal, over three years,” said a joint statement from the three parties.
This funding comes on top of the “significant bilateral funding granted by the EU and its member states for this year and next, including” 150 million euros in concessional loans by France, 70 million euros in grants by the EU or 68 million euros in donations by Germany”, according to the text.
The IMF representative in Senegal reported that the resources transferred through the poverty reduction and growth trust fund, as well as the new IMF resilience and sustainability trust fund, would contribute to the financing of thirty-six months with Senegal.
“These programs aim to address macroeconomic imbalances by reducing debt vulnerabilities, strengthen governance, ensure more inclusive and job-rich growth, and finally address longer-term structural challenges related to climate change, through the implementation of appropriate climate policies,” he explained in the statement.
For his part, the EU ambassador to Senegal considered that the meeting of the three partners was ”manifest proof of the solidarity which unites Team Europe with Senegal and, more generally, with the countries on the way to emergence”.
This is to help cope with the effects on household purchasing power of the rise in prices linked to the Covid-19 pandemic and aggravated by Russia’s war in Ukraine, Mr. Pisani underlined.
This financing is a response to the “legitimate request of African countries to have more special drawing rights, in order to better deal with the crises that have become recurrent”, said the EU ambassador to Senegal.
”These additional funding will be accompanied by efficient and transparent public management, at the service of citizens and in line with the commitments made by the State of Senegal,” he added.
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