The Senegalese Ministry of Finance and Budget has issued a formal rebuttal against international media reports alleging “opaque” financial maneuvers, defending its use of Total Return Swaps (TRS) as a transparent and strategic fiscal tool.
The government maintains that these arrangements, totaling approximately €650 million in 2025, were essential for diversifying the nation’s financing base and ensuring liquidity in a tightening global capital market.
According to the ministry, the TRS operations—conducted between April and November 2025—were fully compliant with parliamentary finance laws and the established issuance schedule. Officials highlighted the cost-effectiveness of these instruments, noting a net interest rate of roughly 7.1%, which significantly undercut the 11% to 12% yields observed on the Eurobond market during the same period. This strategy reportedly resulted in substantial savings for the national treasury.
The government’s statement directly addresses a Financial Times report suggesting that these loans, involving the Africa Finance Corporation and First Abu Dhabi Bank, were kept secret to bolster cash reserves and avoid default. In response, Dakar asserts that auction results were published following each issuance and that the TRS transactions were detailed in official documents, including reports appended to the 2026 budget law.
Furthermore, the ministry clarified that its 2025 financing plan was subject to regular dialogue with the International Monetary Fund (IMF). It also confirmed that all Eurobond obligations due in March 2026 were met on schedule, reinforcing its stance that debt management remains “prudent, transparent, and responsible” despite the complexity of the instruments used.
AC/fss/abj/APA