Azerbaijan halves upper limit on external borrowing

Baku. 23 October. REPORT.AZ/ Expenditures for public debt in the state budget for 2019 (expenses on principal debts and interests) are planned to be AZN 2,334,800,000, up AZN 72 million or 3.2% from 2018, Report informs citing 2019 state budget package.

Of this, AZN 172.6 million are expenses on services to domestic public debt (+69.4 million), AZN 2,162,200,000 services to external public debt (+AZN 2.6 million).

The growth of expenses for services to domestic public debt in the forecast for 2019 was caused by increase in state bonds issued for development of the securities market and interest debt planned to be paid on promissory notes of Agrarkredit CJSC for procurement of IBA’s problematic assets in 2019.

The upper limits are forecasted to be AZN 500 million (-AZN 200 million or 28.6% from 2018) on internal borrowing in 2019, AZN 1 billion on external borrowing (-AZN 1.15 billion or 53.5%) and AZN 4 billion on state guarantees throughout the year.