Senegal’s dollar-denominated bonds fell sharply on Thursday, emerging as some of the weakest performers in global markets, as concerns mount over a potential debt restructuring that could inflict heavy losses on investors, according to Bloomberg.

Eurobonds maturing in 2031 lost 2.62 cents on the dollar to 62.46 cents by 3:48 p.m. in London, marking their lowest level since their launch last year. Securities due in 2033 declined 1.2 cents to 60.75 cents.

Bank of America analysts told clients they remain “pessimistic” about Senegal’s ability to avoid a restructuring. “Absent meaningful cuts in expenditure, we think an external-debt restructuring could occur potentially in the second half of 2026,” said Tatonga Rusike, a sub-Saharan Africa economist, and colleagues in a research note. They estimate the average eurobond recovery value at around 40 US dollars, assuming liquidity ratios stay below IMF thresholds and the G20 common framework for debt workouts is respected.

Investor concern has grown since Senegal’s government uncovered 7 billion US dollars in previously hidden loans from the prior administration. The discovery raised the country’s debt-to-GDP ratio and prompted the IMF to suspend a 1.8 billion US dollars funding package, Bloomberg reported.

Talks for a new IMF program are ongoing and depend on a debt sustainability analysis by the Washington-based lender. Senegalese authorities continue to assert that they do not intend to restructure their debt, even as market worries pressure bond prices.