BAKU, Azerbaijan, October 16. Azerbaijan's
total public debt is projected to reach 34.5 billion manat ($20.2
billion) by the end of 2030, equivalent to 20.4% of GDP.
The forecast is outlined in the Medium-Term Expenditure
Framework prepared by the Ministry of Finance for the next four
years.
According to the document, Azerbaijan's total external and
domestic public debt is expected to reach 27 billion manat ($15.8
billion), or 19.5% of projected GDP, by the end of 2026.
As of January 1, 2026, public debt stood at 20.1% of GDP. This
was 9.9 percentage points below the upper limit for the public
debt-to-GDP ratio set for the medium term under the fiscal
rule.
Last year, Azerbaijan achieved the targets set out in the
updated 2022-2025 framework for its Medium- and Long-Term Public
Debt Management Strategy, which called for keeping public debt
below 30% of GDP and external public debt below $10 billion.
The document states that, in line with the public debt
management strategy, measures have been taken to gradually reduce
the share of external debt in total public debt and replace it with
domestic borrowing. At the same time, financing the state budget
deficit through government securities issued on the domestic
financial market has led to a significant increase in domestic
public debt.
In 2026, the government plans to borrow through government
securities issued on the domestic financial market and by financing
projects with funds from international financial institutions.
This includes attracting loans in cooperation with international
financial institutions to finance priority projects under approved
government programs in the water and transport sectors.
According to forecasts, the public debt-to-GDP ratio will stand
at 20.4% at the end of the medium-term period covering 2027-2030.
The indicator will be monitored as part of efforts to manage public
debt and maintain fiscal sustainability.
