Restructuring of La Poste: the IMF urges Senegal
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Loading... - Aluna Ekal
- 20 May 2022
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The International Monetary Fund (IMF) is not happy with Senegal. Gemaye Edward, head of mission of the IMF in Senegal who spoke yesterday as part of the 5th review of the economic and financial program of Senegal, denounces the awarding of public contracts without competition.
Gemaye Edward, in accordance with the guidelines of the UMOA Council of Ministers, the IMF team and the Senegalese authorities have jointly agreed on measures to avoid fiscal slippage and ensure that the public finance deficit converges towards its medium-term targets in less than 3% of GDP. They also agree on the need to accelerate the restructuring of the La Poste group. According to him, mixed results have been recorded under the program. “All end-December 2020/2021 performance criteria were met with one exception and one of the three indicative targets was met. Tax revenues were below the target set by the program, partly due to the limited implementation of the package of tax measures adopted in the first amending budget law of 2021”,
For Gemaye Edward, the government of Senegal must target its support to the population and increase their revenue to preserve the viability of its debt which, according to him, is still sustainable but efforts should be made in order to create room for maneuver. for future shocks. For the subsidy, he says, it is difficult to eliminate it in the current context if it is the most vulnerable populations who benefit from it. In addition, IMF staff encourages the government of Senegal to complete the budgetary framework in the management of oil and gas revenues ahead of the preparation of the 2023 finance law and to communicate oil revenue projections in full. transparency. Read More…
