Press Release: Statement by an IMF Staff Mission at the Conclusion of a Visit to Senegal

September 22, 2008

Press Release No. 08/217

An International Monetary Fund (IMF) staff team, headed by Mr. Johannes Mueller, visited Senegal during September 16-22, 2008, to assess budgetary developments. The mission met with Minister of Economy and Finance Diop, Minister of Budget Sow, National Director of the Central Bank of West African States (BCEAO) Sene, other senior government officials, and representatives of Senegal's development partners.

The mission released the following statement in Dakar today:

"The mission evaluated the serious budgetary slippages that were uncovered in early August 2008. They comprise a large stock of unpaid bills to the private sector within the normal budgetary framework that have accumulated over the last few years, as well as past extrabudgetary spending, which, taken together, were inconsistent with the availability of financing and Senegal's macroeconomic circumstances. While a full assessment of the stock of unpaid bills is ongoing, their extent and lack of consistency with the budgetary framework warrant strong actions.

"In this regard, the mission welcomed the authorities' plans to implement various corrective measures in the immediate future. In addition, the mission identified, jointly with the authorities, possible measures that could help strengthen the budget framework and budget management. These enhancements will be further discussed in the period ahead, with a view to including them in the authorities' economic program at the time of the next mission.

"The mission would like to thank the Senegalese authorities for their openness and good cooperation. IMF staff is available to continue this close cooperation in the weeks ahead, including during the Annual Meetings in Washington in early October and during the mission for the second review of the Policy Support Instrument (PSI), which will take place as planned in late October."

The three-year PSI for Senegal was approved by the IMF Executive Board on November 2, 2007 (see Press Release No. 07/246).


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