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Find all the economic and financial information on our Orishas Direct application to download on Play StoreThe debt service of the Senegalese state will be reduced by some 137 million euros this year thanks to the moratorium decided by the G20 countries, a breath of fresh air which will be used to fight against the consequences of the coronavirus pandemic, according to the Senegalese government.
"Senegal's participation in the Debt Service Suspension Initiative (ISSD) will take the form of the suspension of the payment of principal and interest due to all creditors of the official bilateral sector until December 31, 2020 for a amounting to 90.57 billion CFA francs (137 million euros) between June 1, 2020 and the end of the year, i.e. 13.51% of the external debt service due in 2020", specified the Ministry of Finance. and Budget on Wednesday in a press release.
Senegal intends to allocate the budgets released to "financing health, social and economic expenditure" of its Resilience Program intended to combat the effects of the Covid-19 pandemic, according to the same source, while the South African country the West has recorded more than 4,500 coronavirus cases and 54 deaths.
Senegalese President Macky Sall had welcomed on April 17 with restraint the decision of the G20 to suspend the debt of the poorest countries, including many African states, but he had persisted in demanding the cancellation, "more than realistic" according to him, of this debt.
On Wednesday, however, Senegal "reaffirmed its commitment to comply with all of its contractual obligations vis-à-vis private sector creditors" and assured that it "does not plan to extend the ISSD to these last".
Faced with the plunge in the economy, the G20 had taken the unprecedented decision in mid-April to suspend for one year the repayments of the debt of the poorest countries weakened by the pandemic - an initiative since declined by the 22 countries of the Club of Paris, as well as by a handful of emerging creditors (China, India, Saudi Arabia, Turkey, South Africa).
Ethiopia, Chad, Republic of Congo and Pakistan obtained this suspension on Tuesday, after eight other countries such as Mali, Mauritania and Burkina Faso.
Nineteen other files should "result quickly", explained Wednesday before the announcement of Senegal the president of the Paris Club, Odile Renaud-Basso.
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