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Senegal's Finance Ministry Defends Opaque €650M Swap Deal

3/25/2026

50 9 Full Breakdown

Summary

Story summary

The Ministry of Finance of Senegal defended using opaque total return swaps to raise €650 million last year to lower funding costs.
Critics say the swaps' full terms and counterparties are unclear despite transparency claims.
The ministry says the swaps cost about 7.1%, well below yields on Senegal's dollar and eurobonds.
Investors grew anxious after the $7 billion hidden loans revelation, triggering a bond selloff and higher risk premiums.

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Story summary

The Ministry of Finance of Senegal defended using opaque total return swaps to raise €650 million last year to lower funding costs.
Critics say the swaps' full terms and counterparties are unclear despite transparency claims.
The ministry says the swaps cost about 7.1%, well below yields on Senegal's dollar and eurobonds.
Investors grew anxious after the $7 billion hidden loans revelation, triggering a bond selloff and higher risk premiums.