Reason for growth of domestic debt in Azerbaijan

16:41 - 23.05.2024

May 23, Fineko/ The external debt is not that big, we want to increase the external debt through more projects.

ABC.AZ reports that Finance Minister Samir Sharifov stated about this during the discussion of the Bill on the Execution of State Budget 2023 at today's meeting of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship.

The minister said that the volume of domestic debt has increased:

"At one time, in order to improve the health of the International Bank, the non-bank credit organization Agrarkredit took on toxic debts of the International Bank. The funds for this were allocated by the state. Bonds with a state guarantee for the rehabilitation of these toxic assets were also issued. We bought these assets at the book price, but their sale was below the real market price, and as a result, a loss was obtained. Agrarkredit has been coping with this for some time. It has now been established that this organization is unable to manage these debts. As a result, we assessed this debt as public. This has affected the growth of our national debt."