Azerbaijan projects state debt to rise by 2027

Azerbaijan expects its total state debt, including external and domestic obligations, to reach 27.6 billion manats ($16.2 billion) by the end of 2026, Report informs.

According to the medium-term budget framework for 2027–2030 published by the Ministry of Finance, the figure is projected to increase to 29.2 billion manats ($17.2 billion) in 2027 and 34.3 billion manats (approximately $20.2 billion) in 2030, equivalent to 20.6% of the projected GDP for that year.

Debt servicing costs for 2027 are estimated at nearly 2.4 billion manats (just over $1.41 billion). Of this, 1.427 billion manats (just over $839.7 million) will go toward external debt servicing, including 1.063 billion manats (nearly $625.6 million) in principal payments and 364 million manats (just over $214.1 million) in interest.

For domestic debt servicing in 2027, 137.2 million manats (just over $80.7 million) are projected for principal payments and 832.8 million manats for interest (almost $490 million).

Overall, interest expenses on public debt in 2027 are expected to total 1.196 billion manats (just under $704 million), including 364 million manats for external debt and 832.8 million manats for domestic debt.