Periodical
Senegal's $1.2 Billion Swaps to Prolong Debt Revamp, S&P Says.
| Title: | Senegal's $1.2 Billion Swaps to Prolong Debt Revamp, S&P Says. |
|---|---|
| Authors: | Bhuckory, Kamlesh (AUTHOR), Hill, Matthew (AUTHOR) |
| Source: | Bloomberg.com. 10/6/2026, pN.PAG-N.PAG. 1p. |
| Subject Terms: | *Derivative securities, *Credit ratings, *Debt relief, *Debt, Senegalese |
| Geographic Terms: | Senegal |
| Company/Entity: | International Monetary Fund 069275188 |
| Abstract: | The article discusses Senegal's financial situation, specifically how its $1.2 billion total return swaps (TRS) could complicate its debt restructuring efforts under the Group of 20's Common Framework. S&P Global Ratings warns that TRS lenders may claim seniority, potentially reducing funds available to unsecured creditors like eurobond holders, which could lead to steeper losses for them. The process may be prolonged, as noted by S&P's Hanns Spangenberg, and could set precedents for future African debt restructurings involving TRS. Additionally, the International Monetary Fund is facilitating an initial meeting between Senegal and its creditors, while S&P has further downgraded Senegal's credit rating to CC, citing an "extremely likely" risk of distressed debt exchange or default. [Extracted from the article] |
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| Database: | Business Source Index |
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