BAKU, Azerbaijan, July 27. Azerbaijan's external debt standing has improved, Trend reports via Fitch Ratings statement on the country's upgraded rating.
"The external debt has decreased in absolute terms in recent years, and its currency structure has improved. About two-thirds of the external debt is owed to official creditors," the statement said.
According to Fitch, external government guarantees and refinancing, which contribute to the volume of external debt, decreased to $6 billion (8.2 percent of GDP) in 2023, down from $6.4 billion in 2022, with most of the amount linked to the Southern Gas Corridor project, which is profitable and unlikely to require government support.
Overall, the rating agency forecasted Azerbaijan's general government debt (external and domestic) to increase to 22.7 percent of GDP by 2026, one of the lowest levels among Fitch's investment-grade sovereign issuers.
This increase will be influenced by government-guaranteed domestic debt (on securities issued within the country).
The general government debt of Azerbaijan was 21.8 percent of GDP in 2023.