Senegal’s debt carrying capacity is classified as strong (calculated based on the October 2020 WEO and 2019 World Bank’s Country Policy and Institutional Assessment (CPIA) score). The applicable thresholds to public and publicly guaranteed external debt are: 55 percent for the Present Value (PV) of debt-to-GDP ratio, 240 percent for the PV of debt-to-exports ratio, 21 percent for the debt service-to-exports ratio, and 23 percent for the debt service-to-revenue ratio. The applicable benchmark for the PV of total public debt for strong debt carrying capacity is 70 percent of GDP.
The inclusion of para-public enterprises and SOEs began in 2017. The list of entities covered by the DSA is provided in the Technical Memorandum of Understanding. The 2018 public sector balance sheet was compiled with support from Fund TA. Previous DSAs erroneously indicated that the social security system was not covered by the debt perimeter.
Senegal is the only WAEMU member country to use this broader definition of public sector debt.
IMF Country Report No. 20/11. The subsequent DSAs published in April 2020 (IMF Country Report No. 20/108) and January 2021 for the 2nd PCI review (IMF Country Report No. 21/18) were streamlined.
The residual is largely explained by the fact that the LIC DSF calculates the real exchange rate effects on the automatic debt dynamics using the assumption that all external debt is denominated in USD. In fact, only about a third of Senegal’s external public debt is denominated in USD.
G TA is exploited jointly with Mauritania.