BAKU, Azerbaijan, November 14. Azerbaijan is facing the risk of failing to secure 700 million manat ($411.8 million) in foreign loan next year.
The the opinion issued by the Chamber of Accounts on the draft law "On the state budget of the Republic of Azerbaijan for 2027" noted that, given the low execution rate of foreign loans in the current year, the allocation of a significant share of foreign borrowing to finance the state budget deficit for the coming year, combined with the fact that the projects intended to be financed through these funds aren't substantiated within the "Budget package", increases the risk that the planned borrowing won’t be fully realized.
According to the opinion, 2.73 billion manat $1.6 billion) is expected to be raised through government borrowing in 2027 to finance the state budget deficit. This is projected to account for 86.8% of total financing.
"According to information provided with the 2027 state budget draft, 700 million manat is expected to be raised through foreign loans. However, the 'Budget package' doesn't provide information on the projects to be financed through these funds or the amounts allocated to them.
Although more than 1.71 billion manat ($1.01 billion) was projected to be received through domestic and external borrowing in 2026, no funds had been received during the first nine months of the reporting year. Meanwhile, 125 million manat ($73.5 million) was received through externally borrowed loans, equivalent to 14.7% of the annual forecast of 850 million manat ($500 million) for 2026," the opinion pointed out.
