Senegal Finance Minister Defends Derivative-Linked Swaps
Finance Minister Cheikh Diba says derivative-linked swaps saved the treasury 64 million dollars. He maintains that the IMF was informed of the transactions.
Senegal's finance minister has defended the government's use of derivative-linked financing, asserting that the instruments allow the nation to borrow at a significantly lower cost than traditional international markets. Finance Minister Cheikh Diba stated that Senegal utilized Total Return Swaps (TRS) to fund operations with a yield of approximately 7%, compared to the 11% to 12% yields seen in Eurobond markets. This discrepancy reportedly generated savings of about 36 billion CFA francs ($64 million) for the national treasury.
The West African nation conducted seven TRS operations between April and November 2025, according to recent ministry statements. These transactions have drawn scrutiny amid broader concerns regarding the country's debt reporting, which has complicated its relationship with the International Monetary Fund (IMF). The government is currently seeking to restore international confidence and secure a new support program.
