By 2025 Government of Azerbaijan Plans to Reduce External State Debt Three Times

Baku / 28.08.18 / Turan: In 2018, the external debt of Azerbaijan is planned at the level of 9.42 billion US dollars.

Note that by early 2018, the external public debt was 9 billion 398.3 million dollars.

This is stated in the presidential decree on approval of the "Short-term and long-term strategy for managing public debt."

At the same time, it is indicated that in 2019 the national debt will be reduced to 9 billion dollars, and until 2025 this figure will decrease to 3.8 billion US dollars.

The government explains the sharp reduction in public debt in 2025 by a lump-sum payment of debts in 2024 on government securities issued for international financial markets in the amount of 1 billion 250 million dollars.

The President's instruction points out that unstable oil prices observed over the past few years and a decrease in the revenue of the state budget therefore compels a special approach to creating new debts in foreign currency. In this regard, in 2018 and subsequent years, loans under state guarantees will be attracted only for certain priority projects. In the period 2018-2025, the government expects to raise $ 500 million from the Asian Development Bank to carry out reforms, $ 325 million from the Asian Development Bank and the French Development Agency for the implementation of the project on the improvement of the Azerbaijan Railways CJSC and the reconstruction of the Baku Railway Yalama, as well as 1 billion 250 million dollars for the re-financing of government securities denominated in foreign currency.

The peak of the ratio of public debt to GDP will be by 2019, when it will be 23%.

However, according to the government"s forecasts, in the next years there will be a downward trend, and in 2021 the state debt will be 19.5% of GDP. In 2025 it will be 12%. -71D-