BAKU, Azerbaijan, February 18. On February 18, the Ministry of Finance of the Republic of Azerbaijan held a regular board meeting to discuss the results of the work carried out in 2025 by the Agency for the Management of Public Debt and Financial Obligations, as well as current issues, Trend reports.
Speaking at the meeting attended by heads of structural divisions and subordinate institutions, Finance Minister and Chairman of the Board Sahil Babayev noted that the successful and purposeful policy implemented in all areas under the leadership of President Ilham Aliyev makes an important contribution to the comprehensive development of the country, ensuring sustainable socio-economic growth and macroeconomic stability. These factors also have a positive impact on the execution of the state budget, creating conditions for the full implementation of revenue and expenditure forecasts, maintaining fiscal discipline, and further strengthening financial positions.
Babayev stated that the strategic goals defined in the updated Debt Strategy for 2022–2025 have been fully achieved, ensuring compliance with priority measures, including keeping the ratio of total public debt to GDP below 30 percent and preventing external public debt from exceeding 10 billion US dollars. At the same time, by the end of 2025, interest rate risk has been maintained at an acceptable level by ensuring that the share of debt attracted at a floating interest rate does not exceed 50 percent of the total portfolio, expanding domestic borrowing while gradually reducing external public debt, and progressively increasing the average maturity of government securities.
The meeting heard a report on the work carried out by the Agency for the Management of Public Debt and Financial Obligations in 2025 and the tasks ahead. As of January 1, 2026, the total public debt of the Republic of Azerbaijan amounted to 25,987.5 million manats, equal to 20.1 percent of GDP, representing a decrease of 5.1 percent or 1,392.7 million manats compared to the beginning of the year. External debt accounts for 31.5 percent and domestic debt for 68.5 percent of the total. The volume of state-guaranteed debt also decreased to 10,368.4 million manats, or 8 percent of GDP.
During the reporting year, efficient use of treasury funds made it possible to save 300.1 million manats on public debt servicing costs. At the same time, as part of refinancing operations, short-term bonds were replaced with long-term ones, ensuring positive changes in the structure of the debt portfolio. The average maturity of government bonds increased significantly to 3.3 years.
It was noted that, in line with its functional responsibilities, the Agency carries out state borrowing, ensures debt accounting and reporting, and conducts analyses. Over the past year, new loan agreements with international financial institutions totaling approximately 235 million US dollars were approved. Coordinated cooperation with international rating agencies, in conjunction with other relevant state bodies, was also ensured to assess the country’s sovereign credit rating.
The Chairman of the Board gave relevant instructions to expand the application of international experience in public debt management, prepare the “Public Debt Management Strategy” for 2026–2030, and improve a number of legal and institutional frameworks in accordance with the Agency’s areas of activity.
The meeting also heard a report on the status of reviewing, coordinating, and submitting draft legal acts received by and prepared within the Ministry of Finance. It was noted that the Ministry, as a subject of legislative initiative, participates in the drafting, examination, adoption, amendment, and repeal of legal acts. In 2025, the Ministry reviewed 1,248 draft legal acts submitted by state bodies in accordance with established procedures. At the same time, 150 draft legal acts were prepared at the initiative of the Ministry and on instructions from higher state authorities. Of these, 43 were laws, 50 decrees, 4 presidential orders, 9 Cabinet of Ministers resolutions, 40 Cabinet orders, and 4 decisions of the Ministry of Finance Board, of which 45 documents were approved during the past year.
In particular, by a decree of the President of the Republic of Azerbaijan dated August 25, 2025, important reforms in the field of public finance management were launched, and this document may be regarded as the foundation of reforms in public finance management. It was noted that within the framework of these reforms, effective management of customs revenues, state duties, dividends, and other budget revenues from state-owned and public legal entities was assigned to the Ministry of Finance. The “Digital Public Finance” information system was created to establish an effective implementation and control mechanism across the Ministry’s areas of activity through the application of digital technologies and innovations. At the same time, public legal entities were brought under treasury support, and the Ministry was tasked with establishing a treasury monitoring mechanism for all bank accounts of state enterprises, organizing procurement of goods, works, and services financed from state funds on the basis of electronic contracts, and exercising state financial control over the targeted and efficient use of funds by state enterprises.
In addition, the Agency for Monitoring State Enterprises was established under the Ministry of Finance, and its charter was approved. Relevant amendments were also made to the regulations of the Ministry and other bodies within its structure to reflect new powers.
Minister Sahil Babayev emphasized the importance of further improving the process of implementing draft legal acts and introducing electronic control mechanisms. In this regard, it was deemed appropriate to implement draft acts not only through the electronic document management system but also via the “Regulatory Legal Acts” information system, to analyze cases of delays and balance the implementation workload. The Chairman of the Board also issued relevant instructions to prepare proposals on simplifying coordination procedures and reflecting in legislation the requirement to provide financial and economic justifications.
A presentation was also delivered at the board meeting on the status of implementing assignments within the Ministry of Finance and on reporting-related issues, and appropriate decisions were adopted on the matters discussed.
