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Azerbaijan's External Debts Equal to $1.8 billon which is a Very Low Indicator Parliamentary Commission Head

Business Materials 16 October 2006 14:00 (UTC +04:00)

The external debts of Azerbaijan equal to $1.8 billion, the Chairman of the Permanent Economical-Political Commission of Milli Majlis [Azerbaijani Parliament], Academician Ziyad Samadzade told, Trend reports. He stressed that Azerbaijan receives debts and credits from the economical development of the country. It makes it necessary to improve the borrowing policy. The borrowing policy of Azerbaijan is a primary component of the development strategy. The external debt of Azerbaijan amounts to $1.8 billion and it forms 9.2% of the gross domestic product (GDP). It is a very low indicator, Samadzade underlined.

Moreover, he stressed that the external debts make up $215 per capita in Azerbaijan. The external debts equal 50-60% of GDP in several CIS countries. It is risky. Our policy is to efficiently use the obtained credits. The internal debts need to be increased, to remove the shortfalls in the state budget, the Deputy emphasized. Samadzade pointed out the necessity of transforming Azerbaijan from borrowing to lending country. The oil revenues will exceed $100 billion. Then it will be necessary to direct the excess finances towards the development, he said.

In addition, the Deputy said that many countries around the world borrow and lend. It is a key feature of the world. The state debts of the country such as the USA equals to a large part of the produced domestic products. It means that the rich and developed countries also borrow and lend, Samadzade concluded.

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