DAKAR- The International Monetary Fund (IMF) has approved $650 million in aid to Senegal to support the West African country's COVID-19 recovery, it said in a statement late on Monday.
The announcement follows an earlier payment of $442 million to Senegal in April 2020, also to mitigate the economic effects of the coronavirus pandemic, the IMF said. urn:newsml:reuters.com:*:nW1N2AE01P
The pandemic has hit the Senegalese economy hard and caused growth to contract to an estimated 1.5% in 2020 from 5.3% in 2019, the IMF said. The Fund expects a modest recovery in 2021 with growth reaching 3.7% and forecast to reach 5.5% in 2022.
The $650 million will be paid over 18 months, with an immediate disbursement of $187 million, the IMF said.
"The 18-month arrangements ... will provide a policy anchor for the next phase of the authorities' COVID-19 response and support a strong and job-rich recovery," it said.
The West African country said last week that it plans to raise $500 million from the debt market to create jobs for young people as part of a response to riots in March. It also issued 775 million euros in Eurobonds.
Senegal, one of Africa's most stable democracies, was rocked by its worst unrest in a decade in March after the arrest of a popular opposition politician triggered an explosion of pent-up anger over economic hardship.
Senegal has brought COVID-19 cases under control in the last few months, ramping up its vaccination drive, but there is a risk of a third wave, the IMF said. The health ministry has recorded 41,725 cases and 1,150 deaths from coronavirus to date.
(Reporting by Nellie Peyton; Editing by Bate Felix and Jane Merriman) ((nellie.peyton2@thomsonreuters.com; +221 77 298 1636;))
