BAKU, Azerbaijan, August 19. Azerbaijan has initiated measures in the first half of this year to extend the average maturity of government bonds, smooth refinancing volumes, and reduce interest expenses on state debt.
Data obtained by Trend from the Ministry of Finance indicates that these efforts are expected to generate savings in debt servicing costs in the 2025 state budget.
By January 1, 2026, Azerbaijan’s external state debt is projected at $4.9 billion, while domestic debt is expected to reach 20.1 billion manat ($11.8 billion), bringing the total state debt to 28.4 billion manat ($16.7 billion).
Furthermore, it is anticipated that 57.2 percent of the external
liabilities will undergo amortization within a five-year horizon,
while 35.4 percent will be addressed within a five to ten-year
timeframe, and 7.4 percent will extend beyond a decade for
resolution. Upcoming external debt issuances are slated to be
executed at benchmark rates augmented by a spread ranging from 0.5
to 1.5 basis points.
In the realm of domestic liabilities, it is anticipated that a
substantial 55.7 percent will be constituted by sovereign debt
instruments disseminated within localized financial ecosystems. As
we approach year-end, projections indicate that 14.9 percent of the
outstanding bond inventory will exhibit a one-year maturity
profile, while 57 percent will fall within the two-to-three-year
maturity bracket, and a substantial 30 percent will extend to five
years or beyond.
