Invited to Seneweb Eco this Sunday, March 29, 2026, economist Dr. Seydina Oumar Sèye justified the use of "Total Return Swaps" (TRS), which he presents as a forced but accepted response.

“They turned off the tap,” he summarizes, referring to investor reluctance and the deterioration in the perception of country risk. In this context, he explains, the government had no other choice but to explore “innovative financing,” little known to the general public, in order to avoid a more critical situation.

 

Returning to the nature of these instruments, Dr. Seye clarifies that "a Total Return Swap is a financial instrument, a derivative product that allows one to hedge against risk," citing in particular exchange rate risk or market fluctuations. The quantitative modeling expert emphasizes their role in managing uncertainty, reminding us that "the financial market is all about daily risk."

 

In response to criticisms alleging a lack of transparency, the economist argues that "there's nothing new under the sun. These are instruments that are largely unknown to the public." According to him, "talking about opacity stems primarily from ignorance," thus rejecting any notion of hidden debt.

 

For Dr. Seye, the use of TRS (Transaction Reduction Scheme) is primarily seen as an alternative to more serious scenarios. "Would you rather criticize or default on payment?" he asks, advocating a pragmatic approach aimed at "overcoming these situations, surviving."

 

The economist acknowledges that these operations carry risks, but points out that they are inherent to any financing mechanism. "There is no such thing as risk-free financing. It's impossible." According to him, the key remains the efficient use of the funds raised to generate growth.

 

When questioned about upcoming deadlines, particularly between 2026 and 2028, he downplayed the future use of these instruments. "We used them as a last resort," he stated, emphasizing the temporary nature of this strategy. TRS (Tax-Reducing Securities) thus appear as a "financial engineering" tool deployed in an emergency, pending a return to a more stable financial situation. "These are temporary approaches to restore the financial ecosystem," he explained, referring to an expected return to concessional financing and more favorable market conditions.

 

Furthermore, Dr. Seydina Oumar Seye calls on the authorities to strengthen foresight and structural reforms. "We must develop strategies to meet our commitments," he argues, while emphasizing "industrialization" and "a dynamic private sector" to sustainably consolidate the economy.