BAKU, Azerbaijan, August 1. The state debt of Azerbaijan is forecasted to reach 17.5 billion manat ($10.3 billion) by the first of January 2024, Trend reports.
According to the Ministry of Finance, the external public debt is forecasted at the level of 10.8 billion manat ($6.381 billion), and the internal - 6.6 billion manat ($3.9 billion).
Starting from the first of January next year, 49 percent of the funds provided in the state budget of Azerbaijan for repayment of the state debt will fall on obligations with a term of up to 5 years, 42.6 percent - up to 10 years and 8.4 percent - more than 10 years.
The interest rate on Azerbaijan's new debt obligations will be calculated according to the new rules from next year. Therefore, for obligations with a period of up to 10 years, a base rate of +0.65 percent will be applied, for a period of 10 to 20 years - a base rate of +0.8 percent and for a period of more than 20 years - a base rate of +0.9 percent.
In addition, 40.5 percent of the domestic public debt will be government bonds issued on domestic financial markets as of January 1, 2024. However, by the end of the year, the share of government bonds with a maturity of 1 year is expected to decrease to 13 percent, with a maturity of 2-3 years - to 66.1 percent and with a maturity of 5-7 years - to 20.9 percent. The cost of servicing the domestic debt will amount to 265 million manat ($155 million).
In general, the state debt of Azerbaijan amounted to 16.2 billion manat ($9.5 billion) as of July 1 of this year.