Azerbaijan plans to gradually shift from foreign financing to more domestic financing, APA-Economics reports.
This was stated in the report on Azerbaijan of "S&P Global Ratings" international rating agency.
S&P also added that Azerbaijan's direct public debt is low if AgrarCredit's guaranteed debt is not taken into account: "The government restructured the International Bank of Azerbaijan in 2017 and assumed part of its debt. IBA's book value is about AZn 10 bln transferred its loans to AgrarCredit, a state-owned non-bank credit institution financed by the Central Bank of Azerbaijan. The loans given to AgrarCredit by the Central Bank have a state guarantee. Thus, we include AgrarCredit's AZN 9.5 bln state-guaranteed loans in the total state debt. Excluding AgrarCredit's guaranteed debt, Azerbaijan's direct public debt is low and is estimated to be around 11% of GDP at the end of 2022. About a quarter of this is domestic debt denominated in local currency, and the rest is foreign currency-denominated. debt".