Azerbaijan to reduce debt service cost in 2017

The official exchange rate on Sept. 29 is 1.6252 AZN/USD.

As much as 1.707,600 billion manats of this amount will be used to service foreign debt and 61.16 million manats will be directed to service domestic debt.

As of July 1, 2016, Azerbaijan's foreign debt amounted to 7.6 billion manats (20 percent of the country’s GDP). The volume of foreign debt that falls per capita is $782.6.

In accordance with Azerbaijan’s draft state budget, 53.2 percent of debt from external borrowings will be repaid during 10 years, 41.2 percent - from 10 to 20 years, 5.6 percent – over more than 20 years. At the same time, 60.8 percent of loans attracted to Azerbaijan have a floating interest rate.

"The growth of external debt in relation to GDP is associated with a reduction of GDP in dollar terms, while the external debt itself, which is denominated in dollars, remains stable,” says the draft state budget.

In accordance with the document, the growth of public debt is not excluded due to failure of some enterprises to service foreign debts, as well as in connection with the process of improvement of the International Bank of Azerbaijan.