Foreign Debt in Azerbaijan to widen on low oil prices

Abstract

Foreign state debt of Azerbaijan amounted to 7,449 billion US dollars (11,4867 billion manat) as of April 1, 2016. The ratio of external debt to GDP ratio is 21.0 %. According to the Ministry of Finance of Azerbaijan, debt structure includes direct obligations of the state and contingent liabilities on borrowed loans under the state guarantees. Thus, 82.3% of public debt raised from the World Bank, the Asian Development Bank, Islamic Development Bank, the European Bank for Reconstruction and Development, the Japan International Cooperation Agency and other international financial institutions funding for various projects in the country. 17.7% of the funds raised through the placement of securities in the international financial markets. CESD has underlined that Azerbaijan’s foreign debt’s share in GDP became as a double digit number in the GDP first time after the second devaluation of the manat of in the last decade. The country has been able to keep share of the foreign debt in the GDP as a single digit number by 2015 since 2005.