Fitch: Azerbaijan's public debt to GDP ratio will decrease

In Azerbaijan, gross general government debt is projected to fall 6.6pp in 2022 to 9.7% of GDP, the lowest in the 'BB' peer group (projected median 54.1% of GDP), Report informs, citing Fitch Rating Agency.

"Government on-lending and guarantees totaled 23.2% of GDP at end-1Q22, from 29.1% at end-3Q21, 77% of which are accounted for by the 2017 restructuring of the International Bank of Azerbaijan (IBA) and by the Southern Gas Corridor project. There is weak corporate governance at state-owned enterprises, which we expect will improve only gradually, despite reform measures to centralize their oversight at Azerbaijan Investment Holding," Agency added.