Azerbaijan’s External Debt Composition Revealed
According to the Azerbaijani Ministry of Finance, as of July 1, 86.8% of Azerbaijan’s $5.3 billion external public debt was denominated in dollars. The euro accounted for 6%, Japanese yen 3%, other currencies 0.6%, and SDR of the IMF 3.6%. The debt was split between variable interest rate liabilities (48.4%) and fixed rate liabilities (51.6%).
Of the external debt, 42.1% is repayable within 5 years, 49.1% within 5-10 years, and 8.7% beyond 10 years. Multilateral financial institutions held 64.2% of the debt, with 25.9% from bonds, and 9.9% from bilateral institutions. Eurobonds made up 25.9%, Asian Development Bank 35%, World Bank 16.7%, and other creditors 22.4%.
Most of the debt (59.4%) funded programs and projects, while 40.6% was used to cover budget deficits. Azerbaijan’s debt composition provides insight into its financial borrowing strategies and relationships with international institutions.
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