BAKU, Azerbaijan, October 13. Targeted measures in managing public debt and financial obligations have led to significant achievements in Azerbaijan, reducing risks in the debt portfolio, strengthening debt sustainability, and ensuring long-term stability, Trend reports via the Ministry of Finance.
The Ministry stated that these measures included extending the maturity of government bonds and implementing a mechanism to deposit national currency funds from the unified treasury account in local banks, generating additional revenue for the budget.
To reduce refinancing risks, some 1–3 year government bonds were replaced with 7–10 year bonds, increasing the average maturity of government bonds. As a result, the share of 1–3 year bonds decreased to 60.6 percent, while 5–10 year bonds increased to 39.4 percent, in line with the updated medium- and long-term public debt management strategy. The average maturity of government bonds reached 3.52 years, 2.4 times higher than at the end of 2024.
As part of efforts to mitigate these risks, a portion of 1–3-year government bonds was replaced with 7–10-year bonds. Consequently, as of October 1, 2025, the share of 1–3-year bonds in the government bond portfolio decreased to 60.6 percent, while the share of 5–10-year bonds rose to 39.4 percent. In line with the updated objectives of the Medium and Long-Term Strategy for Public Debt Management in the Republic of Azerbaijan for 2022–2025, the average maturity (MTO) of government bonds increased 2.4 times compared to the end of 2024, reaching 3.52 years in the first nine months of this year.
Simultaneously, to enhance the efficiency of managing state budget funds and generate additional revenue, the Ministry of Finance began actively managing treasury account funds in national currency starting in 2025. Under this framework, deposit auctions are conducted to place a portion of the treasury balance in the five largest local banks by capitalization and asset volume.
As a result of these treasury management measures, as of October 1, 2025, total interest income reached 75.1 million manat ($44.1 million), including 65.8 million manat ($38.7 million) from funds in national currency and 9.3 million manat ($5.4 million) from foreign currency. This represents roughly 4.3 times the 17.5 million manat ($10.2 million) generated from treasury fund management in 2024.
These efforts have collectively contributed to reducing risks in debt management, strengthening debt portfolio resilience, and improving the efficiency of public fund management in Azerbaijan.