Cost of servicing government debt in Azerbaijan soars

In the first quarter of 2024, the expenses on servicing the government debt and obligations of Azerbaijan amounted to 1.088 billion manats (about $640 million), 5.5 times more than the corresponding period of last year, Report informs with reference to the Ministry of Finance.

In other words, the expenses on servicing the government debt and obligations of Azerbaijan amounted to 55.15% of the funds provided in the state budget.

In January-March 2024, 66.6 million manats (about $39.1 million) were paid for the internal government debt (interest debt), 1,021.4 million manats (about $600.8 million) for the external public debt.

Of the external public debt, 850 million manats (about $500 million) accounted for the principal debt, 171.4 million manats (about $100.8 million) for the interest debt.

Taking into account the operational information provided on the use of funds within the framework of the projects carried out at the expense of foreign borrowing and the main debt payments on the external public debt, as of April 1, 2024, the external public debt stood at $5,507.3 million.

As a result of increasing the internal debt, supporting the development of the state securities market, forming the medium and long-term yield curve of the state debt, and implementing a targeted borrowing policy in the direction of replacing external debt with internal debt in accordance with the medium and long-term Strategy on State Debt Management, as of April 1, 2024, the internal debt amounted to 16,415.8 million manats ($9.656 billion).