Share of Azerbaijan's total debt in GDP to decrease

General government debt is projected to decline 3pp in 2021 to 18.4% of GDP, and to level off at close to 17% in 2022-2023, the lowest in the 'BB' peer group (median 57.7% of GDP), Report informs, citing Fitch Ratings.

General government debt is projected to decline 3pp in 2021 to 18.4% of GDP, and to level off at close to 17% in 2022-2023, the lowest in the 'BB' peer group (median 57.7% of GDP).

Government on-lending and guarantees also fell to 29.1% of GDP at end-3Q21 from 33.2% at end-2020, around three-quarters of which comprise gas investment projects and the 2017 restructuring of the International Bank of Azerbaijan (IBA).

Fitch expects only very gradual progress in improving weak corporate governance in state-owned enterprises, overseen by the recently established Azerbaijan Investment Holding.

According to the Ministry of Finance, in the first half of this year, Azerbaijan's direct foreign debt amounted to $7, 839,000,000, or 16.6% of GDP. This is a decrease in foreign debt and its ratio to GDP by 2.5% compared to the beginning of 2021.