BAKU, Azerbaijan, October 22. Azerbaijan’s general government debt is forecast to fall to 6.9 percent of GDP at end-2024, from 16.2 percent at end-2021, Trend reports, citing the data from Fitch Ratings.
“The outlook for public finances is also supported by the reinstatement this year of a fiscal rule targeting an annual narrowing in the non-energy primary deficit and capping public debt/GDP at 20 percent,” the report said.
At the same time, according to Fitch, state loans and guarantees amounted to 23.2 percent of GDP at the end of the first quarter of 2022, 77 percent of which is due to the restructuring of the International Bank of Azerbaijan in 2017 and the Southern Gas Corridor project, which reduced the risk of contingent liabilities.
Meanwhile, the outlook on Azerbaijan's Long-Term Foreign-Currency Issuer Default Rating (IDR) has been revised to ‘Positive’ from ‘Stable’ and affirmed at 'BB+'.
“The rating is supported by Azerbaijan's very strong external balance sheet, the lowest public debt in the peer group, and financing flexibility from large sovereign wealth fund assets,” Fitch said.
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