Government insists borrowing complied with transparency rules, blames previous administration for hidden debt

Senegal has denied reports that it secretly borrowed €650 million to avoid default, insisting that all financial actions were conducted in line with established market transparency rules.

In an official statement, the finance ministry said the transactions formed part of a broader strategy to diversify funding sources and financial instruments, as the government seeks to manage debt obligations and cover operational costs.

The current administration, which took office in April 2024, also accused the previous government under former President Macky Sall of concealing the true extent of the country’s debt. Officials claimed that undisclosed liabilities had significantly impacted the nation’s fiscal position.

According to the ministry, efforts are now underway to stabilise the economy and ensure greater transparency in public finances, as authorities work to address inherited financial challenges.

Senegal has faced increasing economic pressure in recent years, driven by rising debt levels and global financial uncertainties. Governments often turn to international markets and diversified funding mechanisms to manage fiscal deficits and maintain liquidity.

The transition of power following the 2024 elections has brought renewed scrutiny of public finances, with the new administration pledging accountability and reform.

As the debate over the country’s financial management continues, Senegal’s government maintains that its borrowing practices are transparent and necessary to sustain economic stability.