Azerbaijan's debt balance is not as stable as the government says.
According to the expectations of the International Monetary Fund in the last regional review, GDP in Azerbaijan by the end of the year is expected to reach $ 35.7 billion (57.8 billion manat at the current exchange rate). In this case the total public debt (on external and domestic liabilities) will be at the level of 39.6% of GDP, or $ 14 billion 137 million. It is three and a half times the foreign currency reserves (by Oct. 1, according to the Central Bank, they were $ 4 billion 132.7 million).
Recall, the government of Azerbaijan has always voiced level of the total debt in 12-13% and reported additional lending opportunities in the country by international financial institutions.
By October 1, the GDP amounted to 43 billion 436.3 million manat (minus 3.9% versus the same period last year). The SSC explains this with a decline in output in the construction sector. However, this is not the case - for example, in the record year 2014 due to oil exports, the figure was $ 75 billion 188 million. "Thanks" to the double devaluation of the manat, it sank more than twofold. --17D-
Economics
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On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
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Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
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Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
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Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
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