(Bloomberg) -- Senegal’s eurobonds fell after a top court upheld the country’s main opposition leader’s libel conviction, which would technically disqualify Ousmane Sonko from running for president in elections next month.  

The Supreme Court on Thursday confirmed a six-month suspended prison sentence against Sonko for accusing Tourism Minister Mame Mbaye Niang of embezzlement. 

A spokesman for his Pastef party called the decision a “disqualifying conviction.” Sonko’s defense team said the ruling is expected to bar the presidential hopeful from the race. 

“The electoral code says that anyone convicted to a suspended prison sentence of three to six months becomes ineligible to run,” said Sonko’s lawyer Cire Cledor Ly.

Senegal’s bonds due in 2048 dropped 1.09% to their lowest level since Dec. 13 at market close on Friday, declining for a fifth day. Bonds due in 2037, 2033 and 2028 also fell. 

The 49-year-old former tax inspector has been entangled in a series of legal battles as his popularity rose among Senegalese voters. The libel case was one of many he’s faced in the last couple of years. In July, he was accused of fomenting an insurrection and is currently in prison awaiting trial. Authorities removed him from the electoral roll in August following his conviction in absentia for “morally corrupting” a young woman. 

Sonko has denied wrongdoing, saying the charges are politically motivated. The government has denied allegations that it’s trying to get Sonko disqualified. Meanwhile, the uncertainty has spiked political tensions in the West African nation ahead of Feb. 25 elections.

Senegal Refuses to Restore Sonko on Voter Roll, Lawyers Say

Sonko made the remarks against Niang in a Nov. 2022 televised address and was convicted five months later. A Dakar court later extended his suspended sentence from two months to six months, putting his candidacy at risk.

While Thursday’s Supreme Court decision should technically disqualify him, Senegal’s Constitutional Council has the final say. The council, which initially rejected his candidacy application on a technicality Friday, is unlikely to make a conclusive decision on Sonko’s ability to run in next month’s elections until Jan. 20, when it releases the final slate of presidential aspirants. 

“We remain convinced that his application will be approved,” Pastef spokesman El Malick Ndiaye said.

Sonko has been widely seen as the strongest challenger to Sall’s chosen successor, Prime Minister Amadou Ba. His exclusion could spark popular unrest in a country that’s poised to be one of sub-Saharan Africa’s fastest growing economies this year as it readies to become an oil and gas producer. The International Monetary Fund in October cut its economic forecast for this year from 8.8.% to 8.3% on slower-than-expected expansion in the non-oil economy. 

The judiciary has had an outsized influence in the run-up to next month’s vote. 

Still in the running for the presidency, among others, are Aminata Toure, a former prime minister, and Khalifa Sall, once a popular Dakar mayor who regained the right to run in August after a state pardon for a corruption conviction and a legal amendment that restored his eligibility. Karim Wade, the son of Sall’s predecessor, under which he served as minister, has taken advantage of the amendment to make a presidential bid of his own.

Pastef’s backup candidate, Bassirou Diomaye Faye, is also seeking clearance to run in case Sonko can’t. The Constitutional Council flagged an issue with Faye’s sponsors in a sitting Thursday. To be eligible, candidates need the backing of sponsors, which can either be 13 lawmakers or 40,000 registered voters, at a minimum. Faye was granted a grace period to resubmit his application.

(Updates with bond moves, initial rejection of Sonko’s candidacy by Senegal’s constitutional council in ninth paragraph)

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