Senegal’s government has defended recent borrowing operations following reports of undisclosed loans, as the country grapples with mounting debt and fiscal pressure.
According to international reports, the government secured approximately €650 million through complex financial arrangements involving domestic sovereign bonds and derivative instruments, granting lenders priority repayment rights. Officials, however, insist the transactions are part of a broader strategy to diversify funding sources and manage urgent financial needs.
The Finance Ministry stated that the deals, carried out at a relatively competitive interest rate, were conducted transparently and aimed at supporting debt repayment and covering state expenditures. The loans, backed by institutions including Africa Finance Corporation and First Abu Dhabi Bank, are set to mature in 2028.
The situation unfolds against a challenging economic backdrop, with Senegal facing a high budget deficit and a public debt level exceeding 130% of GDP. The current administration has accused its predecessor of concealing the true extent of the country’s financial liabilities.
Concerns have also been reinforced by findings from the International Monetary Fund, which identified inaccuracies in reported fiscal data between 2019 and 2023, leading to the suspension of a major financial support program.
Despite recent efforts to meet debt obligations, the controversy highlights ongoing challenges around transparency, fiscal management, and investor confidence in one of West Africa’s key economies.
Source: TRT Africa
