DAKAR (Reuters) -Senegal’s president and the political party he belongs to have issued conflicting statements over the leadership of the ruling coalition, a clear sign of dissension among top leaders amid drawn-out talks with the International Monetary Fund.
The West African country is trying to negotiate a new lending programme after the IMF froze a $1.8 billion financial support package last year. That decision was taken after the government disclosed hidden debts that are now estimated at more than $11 billion, which it blames on the previous government.
President Bassirou Diomaye Faye and Prime Minister Ousmane Sonko hail from the same political party and have dismissed long-swirling rumours of a power struggle between them.
The charismatic Sonko, popular among Senegalese youth, chose the little-known Faye as his replacement to run for president when Sonko was barred from contesting in 2024.
Faye then appointed Sonko as prime minister.
Any suggestion of discord raises the possibility of further delays in negotiations with the IMF.
Senegal’s bonds dropped on Wednesday by more than 3 cents to hit a new four-month low, extending recent falls on concerns over progress towards a deal with the IMF.
Sonko said over the weekend Fund officials were pushing for a restructuring of Senegal’s debt – a move he said the government would not accept – which sent the country’s international bonds sharply lower on Monday.
A Fund spokesperson on Tuesday said the Fund had discussed various options with Senegal to address “significant debt vulnerabilities” but that restructuring was a sovereign decision.
Faye did not comment on Sonko’s remarks. Later on Tuesday, he said he was appointing former Prime Minister Aminata Toure, a close ally, to lead the coalition of parties that supported his presidential campaign.But the ruling Pastef party, of which Sonko is president, said it would continue to recognise Aissatou Mbodj, who is close to Sonko, as leader of the coalition.
(Reporting by Diadie BaWriting by Robbie Corey-Boulet; Editing by Alexandra Hudson)
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