16:55 - 10.06.2020

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June 10, Fineko/abc.az. Azerbaijan’s ratio of external public debt to GDP is about 17% and this figure shows that we are in Top 10 in the world on this indicator.

ABC.AZ reports that the relevant statement was made by Vusal Gasimli, the executive director of the Center for Analysis of Economic Reforms & Communications.

Comparing Azerbaijan with other countries, he noted that Japan is the world leader in this indicator: "In our region, the external public debt on countries exceeds on average 40% of GDP. Because of COVID-19 pandemic, the number of countries that have applied for credits to the IMF, the World Bank, the EBRD, ADB, Big 20 and other organizations has reached 150. There are countries that have already declared bankruptcy. A new debt period is beginning in the world. Spending on public debt and liability services in Azerbaijan last year amounted to 6.2% that is much lower than 15% envisaged in the debt strategy. The Fund, established to serve the public debt and liabilities in the State Budget, is a strict institutional entity.

The public debt strategy aims to ensure that the upper limit of the ratio of total public debt to GDP for 2018-2025 would be no more than 30%, while in Azerbaijan this figure is about 20%. The share of lending raised with a variable interest rate in the total portfolio is also lower than the strategy says, and this reduces interest rate risks. Keeping a significant part of Azerbaijan's external public debt and strategic foreign exchange reserves in one currency – US dollars - also reduces our currency risks."