Senegal: Fifth Review Under the Policy Coordination Instrument, Second Reviews Under the Stand-By Arrangement and the Arrangement Under the Standby Credit Facility, and Requests for Augmentation of Access, Waiver of the Nonobservance of a Performance

This paper presents Senegal’s Fifth Review under the Policy Coordination Instrument, Second Reviews under the Stand-By Arrangement and the Arrangement under the Standby Credit Facility, and Requests for Augmentation of Access, Waiver of the Nonobservance of a Performance Criterion, and Modification of a Performance Criterion and Quantitative Targets. The war in Ukraine and trade sanctions against Mali are having significant spillovers on Senegal. The authorities are taking temporary and targeted measures to support the most vulnerable and to stabilize food prices, while preserving debt sustainability. Rebuilding buffers is critical through an accelerated implementation of the domestic revenue mobilization strategy, prudent debt management, and enhanced spending efficiency, notably by gradually phasing out subsidies and reducing recourse to single source procurement. Program performance was broadly satisfactory. All but one end-December 2021 performance criteria and one of three indicative targets were met. Four out of eight structural benchmarks were implemented on time. Progress is ongoing to finalize the remaining ones.