Minister: Azerbaijan has no problem paying off external debt
Azerbaijan, Baku, Feb.25 / Trend N. Ismayilova /
Azerbaijan's external state debt today is about $8 billion, Finance Minister Samir Sharifov told journalists on Friday.
"Today state debt hits about $8 billion, but deducting loans taken under state guarantee, it does not exceed $3 billion," Sharifov said.
According to him, the government will have no problems with paying off these loans, as this insignificant amount and the borrowed funds are designed mainly for the long term period, and interest rates are low on them.
The country's state debt consists of direct borrowings attracted and secured by the state, which acts as a guarantor for the enterprises of national importance. "Though Azerenerji and AZAL pay off borrowed loans at the expense of their own incomes, the state acts as guarantor so that these funds were attracted at lower interest," the minister said.
As of Oct.1, 2010, Azerbaijan's current state debt reached $3,736.8 million, which is 7.9 percent of GDP. Some $415.32 fall to per capita.
The country's external debts under a state guarantee on signed agreements reached $8,751.1 million, which is 18.6 percent of GDP. Some $972.63 fall to per capita.