Citigroup Inc. warns that holders of Senegal’s dollar bonds could recover less than 50% of the face value if a restructuring proceeds, a figure below current trading prices.

The bank’s assessment implies that investors may face a significant haircut, as the market value of the bonds already exceeds the projected recovery.

Senegal’s debt restructuring plan, aimed at reducing the country’s fiscal burden, is now under scrutiny as bondholders weigh the trade‑off between a partial repayment and a protracted recovery timeline.

If the proposed 50% recovery is accepted, it would represent a substantial loss for investors but could help Senegal avoid a default and restore confidence in its sovereign credit market.