Azerbaijan proposes to develop a debt strategy

Baku. 28 May. REPORT.AZ/ Chamber of Accounts of Azerbaijan offers to develop a debt strategy to ensure the stability of the future costs of servicing and debt repayment of.

Report informs, report of the chamber on annual overview on implementation of Azerbaijan's state budget for 2015, declares.

"The chamber has revealed problems in repayment issued under the state guarantees loans to a number of organizations, which may lead to repayment of public funds. Taking into account substantial debt growt in the state portfolio, the chamber considers appropriate to develop a debt strategy to assess the target destinations of debt, providing the stability of future costs and debt repayment", the chamber declared.

It was mentioned that in 2015 amount of debt issued under the state guarantees loans (internal borrowings) amounted to 5 641.5 million AZN, actually spent 3 682.9 million AZN.

The main cause of government domestic borrowing is a significant increase in contingent liabilities by 3 101.5 million AZN - to 3 to 913.0 million AZN. Contingent liabilities generated by the issuance of state-guaranteed bonds of "Agrarkredit" CJSC to repay the bad loans of the International Bank of Azerbaijan and loans of the Central Bank to a number of organizations.

Notably, a loan of 2.5 bln. AZN issued to "Agrarkredit" CJSC under the state guarantees, have been completely spent.