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The International Monetary Fund (IMF) has completed discussions with Senegal, following its request that the IMF disburse $221-million in emergency funding.
Senegal requested the funds to help address the economic challenges posed by the spread of Covid-19 in the country.
The IMF board is due to approve the decision to make available $147-million through a rapid financing instrument and $73-million under a rapid credit facility by mid-April.
Senegal has taken strong measures to halve the community spread of the virus and is implementing a strategic plan to mitigate the economic and social impact of the pandemic.
These measures include declaring a state of emergency, closing schools, suspending flights, banning public gatherings and putting a curfew in place.
The country is also implementing comprehensive plan to upgrade its health system and contain the economic impact, including by setting up a national solidarity fund and providing targeted support to vulnerable households and businesses.
“The Covid-19 pandemic has weakened the macroeconomic outlook for Senegal’s economy. Containment measures to avoid the propagation of the virus, lower external demand, reduced remittances and the sudden stop of travel and tourism are having a significant impact on growth and generating an urgent balance-of-payments need.
“The IMF will help preserve fiscal space for essential Covid-19-related health expenditures, while catalysing additional donor support,” the IMF states.