Ministry official: Azerbaijan's domestic borrowing equals 2.6% of GDP

At the end of the first quarter of 2022, Azerbaijan's domestic public debt amounted to 2.6 billion manats, 2.6% of the country's gross domestic product (GDP), said Azer Mursagulov, director of the Public Debt and Financial Liabilities Management Agency under the Ministry of Finance, Report informs.

In addition, Mursagulov said, at the beginning of April, Azerbaijan's foreign debt amounted to $7.4 billion, which is 12.5% of GDP.

"These figures are lower than in most countries in the region. At present, the ratio of Azerbaijan's public debt to GDP is slightly more than 15%. In addition, the total value of state guarantees issued by Azerbaijan is 1.8 billion manats. This is equal to 1.6% of GDP. Given this, the ratio of public debt to GDP is slightly less than 17%," Azer Mursagulov noted.

The ministry official also spoke about the structure of public debt:

"Foreign public debt is a fairly long-term debt from international financial institutions. Their average payment term is 7-8 years. The periods in our domestic debt are short. However, the average payment period is still more than two years. Today we have enough reserves and internal resources. But at the same time, in some cases, we can attract foreign debt for projects. Here it is necessary to determine the balance, which is regulated by the macroeconomic fundamentals of each country."