Disagreements in Senegal’s National Assembly over budget legislation have added uncertainty to the timetable for the country’s proposed financing programme with the International Monetary Fund. The programme would provide about $2.2 billion over 36 months.

Senegalese authorities and IMF staff reached a staff-level agreement in early September under the Extended Credit Facility. The programme still requires approval from the IMF’s Executive Board before it can take effect. Difficulties during parliamentary scrutiny of the budget bills could delay the presentation of a revenue and spending plan consistent with the commitments discussed with the Fund.

For Senegal’s Treasury, the timing matters as much as the amount. A delay in disbursements could leave the government relying on market borrowing for longer to meet its immediate financing needs.