Senegal's international bonds fell on Tuesday, 20 October, after Ousmane Sonko announced that Pastef deputies would not support two budget bills, according to Tradeweb prices cited by Reuters.
All euro- or dollar-denominated maturities lost more than a cent during the session. The bond maturing in 2037 posted the sharpest decline, down 2.166 cents to be bid at 48.931 cents per euro of face value.
This decline reflects concern that the balance of power in the National Assembly could slow the budget revision, the staff-level agreement reached with the International Monetary Fund and debt treatment. Pastef holds 130 of the 165 seats, and Sonko presides over the institution.
Sonko said on Monday that his group would not vote for either the 2026 amended finance law or the 2027 budget as it stands. He particularly disputes the use of the G20 Common Framework for debt and the plan to reduce fuel subsidies.
The amended bill brings expected real growth in 2026 down to 2.7%, from about 5% in the initial budget, and widens the deficit to 7.6% of GDP, from 5.4%. Energy subsidies reach 790.3 billion CFA francs there, more than three times the 250 billion initially planned.
The staff-level agreement reached with the IMF in September covers 2.2 billion dollars over thirty-six months. It remains subject to approval by the Fund's executive board and forms part of a strategy to restore debt sustainability.