Minister: Azerbaijan's state debt shows low sensitivity to FX, market risks

Azerbaijan's external debt accounts for 32.8% of the total debt portfolio, which reduces the sensitivity of public debt to exchange rate and foreign market risks, Finance Minister Sahil Babayev stated at the first reading of the draft law on the State Budget for 2026 at today's plenary meeting of the Milli Majlis, Report informs.

"Next year, expenditures for servicing public debt are projected at 2.5 billion manats ($1.47 billion). The upper limit for domestic borrowing is proposed at 2 billion manats (just over $1.176 billion), for external borrowing at 6 billion manats, and for state guarantees at 3 billion manats ($1.764 billion). At present, Azerbaijan is among the countries with the lowest public debt‑to‑GDP ratio. As a result of measures taken this year, the average maturity of bonds has increased 2.4 times, reaching 3.5 years, while the share of 7 and 10‑year bonds in the portfolio has risen by 30 percentage points. This allows for refinancing and optimization of the debt repayment burden," Babayev noted.