BAKU, Azerbaijan, May 4. Azerbaijan’s government debt in 2022 is projected to decrease by 6.6 percentage points to 9.7 percent of the GDP, Trend reports, citing the data from Fitch Ratings.
According to the report, Azerbaijani Government’s loans and guarantees accounted for 23.2 percent of the GDP by the end of the first quarter of 2022, compared to 29.1 percent at the end of the third quarter of 2021, 77 percent of which accounted for the restructuring of the International Bank of Azerbaijan (IBA) in 2017, and the Southern Gas Corridor project.
Fitch expects corporate governance at state-owned enterprises to improve gradually as part of the reform measures to centralize their oversight at Azerbaijan Investment Holding.
Meanwhile, Fitch has affirmed Azerbaijan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+' with a Stable Outlook.
“The Stable Outlook balances the benefit of high energy prices in further boosting Azerbaijan's external and public finances,” Fitch said.
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