Sahil Babayev: Azerbaijan aims to keep public debt-to-GDP ratio stable

Azerbaijan aims to keep its public debt-to-GDP ratio stable over the next four years, Finance Minister Sahil Babayev said at a meeting of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship, where the 2027 state budget package was discussed.

He said the public debt-to-GDP ratio is expected to stand at 20% by the end of 2026 and reach 20.3% by the end of 2030.

"Azerbaijan is currently among the countries with the strongest public debt-to-GDP indicators in the world. Of our total debt portfolio of 23.9 billion manats ($14.1 billion), 16.2 billion manats ($9.5 billion) is domestic public debt and 7.7 billion manats ($4.5 billion) is external debt. External debt accounts for 32% of the total portfolio, while domestic debt makes up 68%," Babayev said.

The minister noted that the average maturity of government bond debt had already reached 3.6 years.

"This is a fairly good indicator. Extending debt maturities is important for ensuring short-term liquidity. Seven- and 10-year bonds currently account for 44% of our portfolio. In the period ahead, our main priority will be to continue extending the average maturity of public debt and replacing short-term borrowing with medium- and long-term instruments," the finance minister said.