Senegal’s government has denied claims in the Financial Times that it secretly borrowed 650 million euros ($754 million) to avoid default, insisting the transactions were conducted transparently and in line with market rules. The loans, arranged with Africa Finance Corporation (AFC) and First Abu Dhabi Bank, were reportedly structured using total return swaps, a financial instrument giving creditors priority repayment in case of default. According to the FT, Senegal raised 350 million euros from AFC in May 2025 and 300 million euros from First Abu Dhabi Bank in June 2025, with both loans due in 2028.
Senegal’s finance ministry said the 7.1% interest loans are “much more advantageous” than typical international debt and form part of a strategy to diversify funding sources. The ministry added that the government acted in full compliance with market transparency rules. The West African nation, which assumed power in April 2024, faces a budget deficit near 14% of GDP and public debt estimated at 132% of GDP. The new authorities accuse former President Macky Sall’s administration (2012–2024) of underreporting debt and budget deficits. An IMF review of Senegal’s accounts for 2019–2023 found discrepancies in reported debt and budget data. The IMF has suspended a $1.8 billion aid package until Senegal provides updated fiscal commitments. Earlier this month, Senegal repaid $471 million of international debt, averting immediate default fears.
