By Diadie Ba, AyenDeng Bior and Anait Miridzhanian
DAKAR, May 25 (Reuters) - Senegal President Bassirou Diomaye Faye named a seasoned economist as prime minister on Monday, three days after dismissing the old government led by a firebrand populist who had spoken out against debt restructuring.
The new prime minister, Ahmadou Al Aminou Lo, formerly served as head of the Senegal branch of the Central Bank of West African States.
Appearing on state television for the announcement of his appointment, Lo said he wanted to reassure the local private sector and foreign investors even as he acknowledged Senegal's difficult financial position.
"We must all be aware of the state of emergency our country currently finds itself in. In particular, the state of public finances and its impact on the economy," he said.
"Senegal is a safe and reliable country and intends to remain so."
The International Monetary Fund froze Senegal's $1.8 billion lending program following the discovery of misreported debt, pushing the country's end-2024 debt level to 132% of its economic output.
Ousmane Sonko, the outgoing prime minister, had opposed any restructuring of the debt, estimated at $13 billion, which he said the IMF was advocating, while Faye has been less vocal on the issue.
Faye fired Sonko, the man who helped the president's political rise, on Friday after months of mounting tensions.
POLITICAL UNCERTAINTY
In March, Sonko warned he could take the ruling Pastef party, which dominates the National Assembly, into opposition if the president strayed from the party's agenda, a threat that looms over the government's ability to pass any reforms needed to unlock IMF support.
The National Assembly is due to meet on Tuesday to discuss "reintegrating" Sonko as a lawmaker. The resignation of the National Assembly speaker on Sunday has fueled speculation Sonko himself could fill the role.
In his remarks on Monday, Lo said his appointment did not signal a retreat from Senegal's commitment to "systemic transformation" under Faye, but instead reflected a new approach aligned with the president's vision.
He also offered conciliatory words for Sonko, praising the record of the government he led, including an economic recovery plan announced last year that featured a heavy reliance on domestic funding.
(Reporting by Diadie Ba, Ayen Deng Bior and Anait Miridzhanian; Editing by Robbie Corey-Boulet and Paul Simao)
