Senegal’s Prime Minister Ousmane Sonko opposed a proposed debt restructuring, emphasising the government’s commitment to financial sovereignty and maintaining access to international markets, Bloomberg reported.

Speaking at a Pastef party meeting in Dakar, Sonko warned that restructuring could bring short-term relief but would carry long-term costs, including restricted market access and difficulty attracting investors for major infrastructure projects.

Senegal’s dollar bonds fell to a seven-month low following the International Monetary Fund’s two-week mission, which concluded without a staff-level agreement. The government had sought a deal after the IMF froze a 1.8 billion US dollars facility last year over undisclosed loans. A subsequent audit revealed $ 7 billion in previously hidden borrowing, prompting S&P Global Ratings and Moody’s to downgrade the country’s debt further into junk territory.

Facing a budget deficit of 14 percent of GDP and public debt at 132 percent of GDP, Sonko said the government would prioritise raising domestic revenue while shielding households from higher costs on essentials such as water, electricity, rice and sugar. Recent measures include levies on tobacco, alcohol, gambling and mobile money transfers.