BAKU, Azerbaijan, Jan.11
By Zeyni Jafarov - Trend:
A significant growth in revenues from internal borrowing is forecasted in Azerbaijan, the Accounts Chamber noted in its opinion for the country’s 2021 state budget, Trend reports.
According to the opinion, via the internal borrowing, that is the placement of securities in the country, it’s projected to allocate 1.3 billion manat ($760 million) for covering the state budget deficit.
The chamber also predicts the possibility of a decrease in interest in the issued securities in the context of an underdeveloped secondary market, depending on the current economic situation, market conditions and taking into account the limited network of investors. All this, in turn, determines the limitation of the possibility of raising funds through government bonds to cover the budget deficit, and also actualizes the accounting of internal borrowing risks, including interest rate risks.
At the same time, it’s also envisaged to borrow 595 million manat ($350 million) from external sources for covering the budget’s deficit.
(1 USD = 1.7 AZN on Jan.11)
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