BAKU, Azerbaijan, November 19. In the draft state budget for 2026, expenditures related to servicing public debt are projected at 2.5 billion manat ($1.47 billion), Azerbaijan's Finance Minister, Sahil Babayev, said during today’s plenary session of the parliament, Trend reports.
Speaking at the discussion of the draft law “On the State Budget of the Republic of Azerbaijan for 2026,” Babayev stated that the proposed upper limit for domestic public borrowing is 2 billion manat ($1.18 billion), while the ceiling for external public borrowing is set at 6 billion manat ($3.53 billion). The upper limit for state guarantees is projected at 3 billion manat ($1.76 billion).
The minister highlighted that Azerbaijan continues to maintain one of the lowest public debt-to-GDP ratios globally. He pointed out that external public debt constitutes 32.8 percent of the total debt portfolio, thereby mitigating the country's vulnerability to exchange rate fluctuations and external market volatility.
“Thanks to the measures implemented this year, the average maturity period of bonds has increased by 2.4 times, now reaching 3.5 years. Moreover, the proportion of 7- and 10-year bonds in the debt portfolio has risen by 30 percentage points. These adjustments are fostering more favorable conditions for bond refinancing and optimizing the overall debt servicing burden,” Babayev said.
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