As of July 1, Azerbaijan's state-guaranteed debt stood at 7.2323 billion manats, equivalent to 5.5% of the country's GDP. This figure represents a significant reduction of 30.2% compared to the beginning of the year, according to the Operative Information Center-OMM, citing data from the Ministry of Finance.
The substantial decrease is primarily attributed to the Southern Gas Corridor CJSC repaying 2 billion US dollars in foreign currency-denominated bonds that were previously backed by state guarantees.
According to the official report, 4.928 billion manats (2.8988 billion US dollars), or 68.1% of the total state-guaranteed debt, consists of external loans. The remaining 2.3043 billion manats, or 31.9%, is comprised of domestic loans.
As of the reporting date, the state-guaranteed debt portfolio was structured with 46.9% in fixed interest rate debt and 53.1% in variable interest rate debt. The currency composition of the portfolio is as follows: 52.8% in US dollars, 22% in euros, 17.9% in manats, 5% in Japanese yen, and 2.3% in other currencies.
Regarding repayment schedules, 65.5% of the state-guaranteed debt is due within five years, 21.5% is scheduled for repayment between five and ten years, and 13% is set for repayment over a period exceeding ten years.
This reduction in state-guaranteed debt reflects Azerbaijan's ongoing commitment to prudent fiscal management and debt sustainability. By actively managing its liabilities, particularly through the repayment of major obligations like those of the Southern Gas Corridor, the government aims to strengthen the national economy's resilience against external financial fluctuations.
