As of January 1, Azerbaijan's foreign state debt stood at 4 billion 813.5 million US dollars, equivalent to 8 billion 183 million manats. This figure represents 6.3% of the country's Gross Domestic Product (GDP). Meanwhile, domestic state debt reached 17 billion 804.5 million manats, accounting for 13.8% of GDP.
The Operative Information Center-OMM, citing the Ministry of Finance, reports that compared to the same period last year, foreign state debt decreased by 6.7%, while domestic state debt fell by 4.6%. Consequently, by the end of 2024, the total state debt in Azerbaijan amounted to 25 billion 987.5 million manats, marking a 5.3% reduction compared to the end of the previous year.
According to the Ministry of Finance, a total of 2 billion 99.5 million manats has been allocated from the 2025 state budget for debt servicing. Of this amount, 757 million manats is designated for domestic debt (136.8 million manats for principal and 620.2 million manats for interest), while 1 billion 342.5 million manats is earmarked for foreign debt (959.7 million manats for principal and 382.8 million manats for interest payments). Optimization measures have resulted in total savings of 300.1 million manats in debt service expenditures.
Azerbaijan continues to maintain a conservative fiscal policy, keeping its debt-to-GDP ratio significantly below international benchmarks. The reduction in external borrowing aligns with the government's strategy to strengthen the domestic financial market and utilize the country's substantial foreign exchange reserves to ensure long-term economic stability and sovereignty.
