As of July 1 of this year, Azerbaijan's foreign public debt amounted to $4.6168 billion, with 86.4% of the total obligations denominated in US dollars, according to the Operative Information Center-OMM, citing data from the Ministry of Finance.
According to the report, the remaining composition of the debt includes the euro at 6.1%, Special Drawing Rights (SDR) of the International Monetary Fund at 2.9%, the Japanese yen at 3.1%, and other currencies accounting for 1.5%.
The structure of the debt obligations is split between variable and fixed interest rates, with variable rate obligations accounting for 49.4% of the total foreign debt, while fixed-rate obligations make up 50.6%.
Regarding repayment timelines, 59.5% of the foreign public debt is scheduled for repayment within five years, 34.9% between five and ten years, and 5.6% over a period exceeding ten years. Based on existing credit agreements and Eurobond repayment schedules, the average maturity of the foreign public debt stands at 4.8 years.
The distribution of the debt by creditor type indicates that 59.8% of the foreign public debt is held by multilateral financial institutions, 30% is comprised of Eurobonds, and 10.2% consists of loans attracted from bilateral financial institutions.
Managing foreign public debt is a critical component of Azerbaijan's macroeconomic stability strategy. By maintaining a diversified portfolio and monitoring repayment schedules, the Ministry of Finance aims to ensure fiscal sustainability and minimize risks associated with currency fluctuations and interest rate volatility in international financial markets.
