The DSA has been prepared jointly by World Bank and IMF staffs. The fiscal year for Senegal is January 1 to December 31.
See Senegal: Enhanced Initiative for HIPC-Completion Point Document (Country Report 04/130 or IDA/R2004-0065).
MDRI debt relief from the IMF became effective January 5, 2006, providing stock relief on debt disbursed before end-2004 and still outstanding at end-2005. IDA and the AfDF started providing debt relief in July 2006. The eligible debt covers IDA credits disbursed before end-2003 and AfDF credits disbursed before end-2004 that were still outstanding at the time of qualification.
Public domestic debt comprises central government debt. Debt issued in the WAEMU is included in domestic debt.
The quality of policies and institutions is measured by the World Bank’s Country Policy and Institutional Assessment (CPIA). An average of the most recent three-years’ ratings is applied in the analysis. The indicative external debt burden thresholds for Senegal are: (i) an NPV of external PPG debt-to-GDP ratio of 40 percent; (ii) an NPV of external PPG debt-to-exports ratio of 150 percent; (iii) an NPV of external PPG debt-to-revenue ratio of 250 percent; (iv) an external PPG debt service-to-exports ratio of 20 percent; and (v) an external medium- and long-term PPG debt service-to-revenue ratio of 30 percent.
Much of the projected current account deficit is financed through FDI inflows. However, non-FDI factors such as weak export growth and higher oil prices create a balance of payments gap, which is assumed to be financed by both public and private sector borrowing.
Senegal’s real GDP growth dropped by almost 3 percentage points in 2006 (from 5.3 percent in 2005 to 2.3 percent in 2006), mainly due to difficulties faced by ICS.