Senegal has reached a series of loan agreements with the International Monetary Fund worth more than $1.8 billion dollars, the IMF said Thursday.
The West African country agreed to a range of fiscal and governance reforms under a 36-month deal, with measures aimed at reducing the deficit to three percent of economic output by 2025.
The Senegalese economy experienced a sharper-than-anticipated slowdown last year, while inflation soared to a multi-decade high on the back of food inflation, the IMF previously said.
An arrangement worth roughly $1.5 billion "will support the authorities' efforts to safeguard debt sustainability and rebuild depleted buffers," IMF Senegal mission chief Edward Gemayel announced in a statement.
The goal will also "require further revenue mobilization, including streamlining tax exemptions, and phasing out regressive and elevated energy subsidies," he said.
Other policies would seek to strengthen anti-money laundering and terrorism financing and deliver more inclusive and job-rich growth, "by strengthening social safety nets, promoting gender equality, and improving the business environment."
A separate IMF loan agreement worth nearly $330 million will focus on "climate mitigation and adaptation measures, and on integrating climate-related considerations into budget preparation, execution, and monitoring," he said.
The measures are subject to approval by the IMF's executive board, although this last step is seen largely as a formality.