12:58 - 4.11.2022

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November 4, Fineko/abc.az. The expenses related to servicing the public debt in the State Budget for 2023 are projected at $1.5 bn.

ABC.AZ reports with reference to the Ministry of Finance that the funds in the State Budget for the next year in the amount of AZN 230 million, projected for the costs of servicing the domestic public debt, constitute interest expenses on government bonds placed on the domestic financial market.

Compared with State Budget 2022, the projected funds for servicing the state debt in State Budget 2023 are AZN 787 million less.

The main reason for this is that, in accordance with international practice, payments of the principal debt on loans attracted by the government are secured by refinancing deducted from State Budget expenditures.

Thus, payments of the principal debt in the amount of AZN 800 million, which are due to be repaid in 2023 on loans raised directly on external public debt, will be refinanced at the expense of external borrowings attracted during the year, excluding budget expenditures, starting next year.