Fitch expects Azerbaijan's gov't debt to increase to 22.7% of GDP

Fitch Ratings project Azerbaijan's government debt to increase modestly to 22.7% of GDP by 2026, one of the lowest among Fitch's investment-grade sovereigns, after increasing by 10pp to 21.8% of GDP due to the recognition of previously domestically guaranteed debt in 2023, Report informs, citing the agency.

"External debt has declined in absolute terms in recent years, currency composition has improved and about two-thirds of external debt is to official creditors. External government guarantees and on-lending declined to $6 billion (8.2% of GDP) in 2023, from $6.4 billion in 2022, with most of this related to the Southern Gas Corridor project, which is profitable and not likely to require sovereign support," the agency said.