Senegal Denies Secret €650 Million Loan Claims Amid Debt Transparency Dispute

Senegal has denied claims that it secretly borrowed €650 million to avoid default, saying the loans were transparent and part of a funding strategy. The funds, from Africa Finance Corporation and First Abu Dhabi Bank, carry a 7.1% interest rate and mature in 2028. The new government criticized former president Macky Sall for concealing debt, while the country faces a 14% budget deficit, 132% public debt, and a suspended $1.8-billion IMF aid program.

Senegal has rejected claims by the Financial Times that it secretly borrowed €650 million ($754 million) to avert a default, insisting the transactions were carried out in line with market transparency rules. The current government, which took office in April 2024, has accused former president Macky Sall’s administration of concealing the true extent of national debt.
The Financial Times reported that Senegal had tapped €650 million from the Africa Finance Corporation (AFC) and First Abu Dhabi Bank in 2025, in loans that allegedly gave the lenders priority over existing bondholders. In response, Senegal’s finance ministry stated that the transactions were part of a strategy to diversify funding sources and raise cash to cover debt obligations and operating costs.
According to the report, the loans were issued through domestic sovereign bonds using financial instruments called total return swaps, which ensure that creditors are repaid first in the event of default. The government said the deals, which carry a 7.1% interest rate, were more favorable than international market options and were fully transparent.
The AFC loan, based in Nigeria, was concluded in May 2025 and raised up to €350 million, while a three-year swap with First Abu Dhabi Bank in June allowed Senegal to borrow an additional €300 million. Both loans are scheduled to mature in 2028. Earlier this month, the government successfully repaid $471 million in international debt, easing concerns of an imminent default.
Senegal faces a budget deficit of nearly 14% of GDP and public debt estimated at 132% of national output by the end of 2024. The new government has criticized the Sall administration for understating budgetary deficits and debt levels, a claim partially confirmed by an International Monetary Fund (IMF) review, which found misstatements regarding budget and debt data for 2019–2023. As a result, the IMF has suspended a $1.8-billion aid program agreed in 2023, pending further clarification and commitments from Senegal’s current authorities.