#AlJazeera Who pays the price of Senegal’s debt? | Counting the Cost

It all unfolded last year, after a review of the nation’s finances uncovered $7 billion dollars in hidden borrowing by the previous government – that’s more than one fifth of the country’s GDP.

This led the International Monetary Fund to freeze almost two billion dollars in loans, while rating agencies downgraded the country’s credit further into junk.

The new government says it must now raise taxes and cut public spending to address the shortfall.

But, critics warn austerity could backfire — slowing growth and sapping the very tax revenue it seeks to raise.