A close-up of Senegal’s Prime Minister delivering a speech during a political event, highlighting government tensions.
Senegal is pushing back against reports that it covertly borrowed hundreds of millions through opaque derivative instruments last year, insisting the transactions were transparent and conducted via public bond auctions. The seven total return swaps, valued at roughly $754 million, were part of a strategy to lower funding costs and diversify the country’s investor base, according to the finance ministry. However, analysts warn that the full terms and counterparties remain unclear, raising concerns about potential complexities in the event of a future debt restructuring. The controversy arises as Senegal’s public finances remain under intense scrutiny following the disclosure of previously hidden loans in 2024. While the government maintains the operations were in line with market rules, the episode underscores lingering investor anxiety over the nation’s fiscal transparency.
Bloomberg