Senegal’s government expects debt-servicing costs to rise sharply next year after uncovering billions of dollars in previously unreported liabilities incurred under the former administration, Bloomberg reported.

Budget documents published by the Finance Ministry show that debt-service payments in 2026 are projected at 5.49 trillion CFA francs (equivalent to $9.7 billion), up 11% from an earlier forecast of 4.95 trillion CFA francs. Over the next three years, total debt obligations are expected to exceed initial projections more than fourfold, reaching 14.9 trillion CFA francs.

The revisions follow a financial review by President Bassirou Diomaye Faye’s government earlier this year, which revealed about $7 billion of previously undisclosed borrowing. The finding prompted the International Monetary Fund (IMF) to suspend its $1.8 billion programme with Senegal and triggered credit rating downgrades from S&P Global Ratings and Moody’s Ratings to deeper junk levels.

The budget report warned that “meeting public financing needs have become a major risk” under current conditions. A spokesperson for the Finance Ministry was not immediately available for comment.

More than 40% of Senegal’s sovereign debt is denominated in foreign currencies, according to S&P Global Ratings, leaving the country vulnerable to exchange-rate fluctuations and external market pressures.

Talks are currently under way in Dakar between the government and an IMF delegation aimed at securing a new support programme. Renewed IMF engagement is seen as essential for Senegal to avoid a debt restructuring, said Leeuwner Esterhuysen, senior economist at Oxford Economics.

According to the country’s medium-term debt management strategy, Senegal expects its debt-to-GDP ratio to stabilise at around 101 percent by 2028. Including state-owned enterprises, total liabilities stood at 132% of GDP at the end of last year, compared with 119 percent when excluding public companies, according to the revised budget.

The West African nation projects economic growth of 7.8% in 2025, driven by new oil and gas output, while growth is expected to average 5.5% annually from 2026 to 2028. The fiscal deficit for 2026 is forecast at 5.4% of GDP, higher than the previous 5 percent target.