Azerbaijan wants to borrow 40-50 billion

Azerbaijan intends to borrow money in the coming years. On March 13, in Berlin, Azerbaijani President Ilham Aliyev, at a meeting with the heads of a number of German companies, said about this: "... according to the 2030 Strategy, we will work to achieve the strategic goals facing our country, and the minimum amount we will raise for the implementation of this strategy will be 40-50 billion US dollars. In other words, we will continue to borrow money on issues related to the technological transition, but at the same time we will build our future economic plans mainly on the basis of our own resources.”

According to the Ministry of Finance, at the beginning of 2022, Azerbaijan's direct external public debt amounted to 8,135.7 million US dollars (13,830.7 million manats).On the same day, the domestic debt rose to 16 billion 899 million manats.

Rufat Guliyev, a member of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship, suggested in his statement to Turan that most of the mentioned 40-50 billion will go to the restoration and integration of Karabakh, the Eastern Zangezur zone: “Naturally, this will give an impetus to the development of the economy of the whole of Azerbaijan. And part of the funds will go to mine clearance of this region. This is very important for the speedy resettlement of citizens to their native lands and the development of their economy there.”

According to the MP, the growth rate of Azerbaijan's economy is high: “We maintain the parity of our currency against the dollar. It is very important. Because without parity, inflation will grow. It also convinces us that we can control inflation and manage our economy. Our gross domestic product (GDP) increases by 2.5-3 percent in annual equivalent every year. In this case, it allows us to properly manage our loans.”

R.Guliyev said that Azerbaijan's external debt is 10.7 percent of the gross domestic product: “For most countries it is 30-40 percent. This indicator is the lowest in the CIS region. We have a $55 billion airbag. We are talking about our gold and foreign exchange reserves. This gives us confidence in obtaining international loans and using them in the national interest.”

According to him, Azerbaijan's transport and logistics centers generate more revenue every year: “In addition, it is planned to double the transportation of gas through the Southern Gas Corridor, which means doubling our income. That is, we have enough economic potential to take these loans and use them effectively.”

In his opinion, Azerbaijan is successfully implementing its socio-economic model: “therefore, Azerbaijan's rating in the international arena is growing. It is also an indicator of great trust. The meeting of Mr. President with the heads of leading companies in Berlin is a vivid example of this.”

He believes that Azerbaijan, using these loans, will raise its economy to the next, higher level: "in the 2010s, the Azerbaijani economy made a leap in its development. GDP growth ranged from 15 to 26 percent, and on average this growth was 19 percent every year for 8 years. It is possible that we will be able to repeat this record and solve the rest of our problems. They will give us these loans and give them at the lowest interest rates, because they believe in Azerbaijan.”

Economist Nazim Beidamirli also reminded Radio “Azadlig” that Azerbaijan has foreign exchange reserves of more than $ 50 billion: “Naturally, it is necessary to cooperate with international financial corporations, both as a borrower and as a lender. But he looks at what percentage of the debt. There is no problem here if you can close the loan at the expense of the annual income from our foreign exchange reserves abroad.”

But, according to him, loans are issued at high interest rates: "Foreign financial institutions issue loans at high interest rates. The loans we have received so far have been issued at 5-7 percent or more per annum. It is impractical in the current state of Azerbaijan.”

In his opinion, the specified loan can be attracted not in cash, but in the form of investments: “That is, if a foreign company shows interest in the Azerbaijani market, it can invest.”

The economist says that Azerbaijani citizens do not have a very good social situation, incomes are not growing, there are appropriations and monopolies: “When foreign companies invest, they look at the international ratings of Azerbaijan, the business environment in the country, the level of monopolies, how the legal system functions. In all these ratings, we lose to neighboring countries - Georgia and Armenia. The head of state and his team should focus on these issues so that the business environment in the country is more transparent, so that there is no official monopoly, and the transparency index increases.”

He stressed that it is very dangerous if the loan is provided in cash, if Azerbaijan's funds abroad are taken as collateral and guarantees: “in this case, our foreign reserves will also come into question, and where there is no current transparency, we will not be able to return them.”--0--