USAID. MISSION TO SENEGAL
Program grant : African economic policy reform program (AEPRP-II)
Program to provide a $32 million sector grant to the Government of Senegal conditioned on policy reforms to help establish a viable banking system in Senegal, characterized by adequate levels of solvency, liquidity, and profitability, by increased sectoral and tern diversification, and by increased mobilization of domestic savings.
1989
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Abstract
Local currency made available under the program will be used to accelerate repayment of GOS liabilities to the banking system. Program conditionality is designed to: (1) reduce GOS ownership to less than 25% of any bank, and allow banks managers to make lending and personnel decisions without GOS interference; (2) reorganize, consolidate, or close illiquid or insolvent banks with appropriate oversight by the Central Bank of the West African Monetary Union (BCEAO), including consolidation into a new bank of the assets of four former public banks (BNDS, SONAGA, SONABANQUE, and SOFISEDIT); (3) establish targets and timetables for the recovery of bad debt; (4) encourage the mobilization of domestic savings; (5) increase the frequency of BCEAO inspections and improve bank supervision; and (6) improve the allocation of credit and of outreach to all sectors of the economy. Complementary TA and studies will be provided under project 6850299.
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