BAKU, Azerbaijan, April 16. The share of external public debt in Azerbaijan’s total public GDP should be reduced, said Azer Mursagulov, director of the Agency for Public Debt and Financial Obligation Management of Azerbaijan’s Ministry of Finance, Trend reports.
According to Mursagulov, in recent years Azerbaijan has reduced the share of foreign currency in external public debt from 95% to 81%.
He recalled that in 2018, 95% of the foreign debt portfolio was in foreign currency, and only a small part – the national currency.
“One of our main goals was to reduce it to less than 85% in the medium term. Today, 81% of Azerbaijan’s debt portfolio is in foreign currency,” the agency’s head said. . “In the medium term, it is planned to further reduce the share of foreign currencies in public debt.”
Mursagulov also noted that public debt has interest rates.
“Some loans are made by financial institutions at fixed interest rates, but loans from other financial institutions may be at floating interest rates (rates depend on market conditions),” he said. Explain.
“In 2018, 65% of Azerbaijan’s debt securities had a floating interest rate. Now the figure for these rates has been reduced to 35%, and we are working on an even greater reduction to fix this level” , added the director.