Minister: Azerbaijan intends to keep external debt at 10 percent of GDP in next 5 years

Business Materials 23 December 2013 18:10 (UTC +04:00)

Baku, Azerbaijan, Dec. 23

By Abbas Akhundov - Trend:

Azerbaijan intends to keep the size of its foreign debt in the next five years at a level not exceeding 10 percent of GDP, Azerbaijani Finance Minister Samir Sharifov said.

The minister made the remarks at the 'Azerbaijan 2013-2018: towards new goals' conference organized on Monday by the New Azerbaijan Party in Baku.

He said that today the country's external debt totals 8.3 percent of GDP.

"An indicator of 40 percent of GDP is considered as an acceptable practice in the world and in some developed countries it reaches up to 70-80 percent," the minister said.

Sharifov noted that, the external debt of the country is formed mainly by long term loans from international financial institutions, on terms favorable to Azerbaijan.

Agreements worth $11.6 billion were signed between Azerbaijan and international financial institutions and other credit organizations as of July 1 2013, to support the country's economic reforms, as well as to finance individual priority projects.

According to data provided by the credit organizations the total external state debt on loans used under the signed agreements totals $5.5 billion.

Azerbaijan's external debt is 7.9 percent of GDP or $587.3 per capita.

Translated by E.A.

Edited by C.N.