Fitch forecasts Azerbaijan's government debt to fall further to 6.9% of GDP at end-2024

Fitch forecasts general government debt to fall further to 6.9% of GDP at end-2024, from 16.2% at end-2021, Report informs, citing the agency.

The outlook for public finances is also supported by the reinstatement this year of a fiscal rule targeting an annual narrowing in the non-energy primary deficit and capping public debt/GDP at 20%.

Government on-lending and guarantees totalled 23.2% of GDP at end-1Q22, 77% of which are accounted for by the 2017 restructuring of International Bank of Azerbaijan, and the Southern Gas Corridor project, on which contingent liability risk has reduced.

As of July 1 this year, Azerbaijan's direct external public debt amounted to $7,167.1 million, and direct domestic public debt made 2,789.7 million manats ($1.64 million)

For six months, direct external public debt decreased by $226.3 million or 3.1%, while direct domestic public debt increased by 282.6 million manats ($166.24 million) or 11.3%.

As of July 1, the total public debt amounted to 14.7% of GDP, including external public debt which made up 11.7% of GDP, domestic public debt which amounted to 3% of GDP.