Nov 14 (Reuters) - Azerbaijan is in talks with international financial institutions including the World Bank to secure around 850 million manats ($500 million) in project financing next year, Finance Minister Sahil Babayev told Reuters.
He said the country was also talking to the European Bank for Reconstruction and Development and the Asian Development Bank, among others.
«Next year, Azerbaijan intends to utilize 850 million manats for project financing, which will be provided through loans attracted from international financial institutions,» Babayev said.
«We are in talks with all of them, as this involves multiple projects. Negotiations are underway on all fronts, and we also do not rule out issuing Eurobonds to finance some of our projects,» the minister said, without giving details of the potential projects.
As of October 1, Azerbaijan’s total government debt was 25.4 billion manats, equivalent to 19.5% of GDP, Babayev said. Of this, 8.3 billion manats, or 32.8%, was external government debt and 17.1 billion manats, or 67.2%, domestic government debt.
According to government forecasts, the debt-to-GDP ratio is projected to reach 21.8% by end-2026 and 21.2% by 2029.
«Azerbaijan ranks among the top-twenty countries globally with the lowest debt-to-GDP ratios,» Babayev said.
As of October 1, Azerbaijan's strategic reserves totalled $81.5 billion, roughly 17 times larger than external government debt.
According to Babayev, the state oil fund’s revenues and expenditures in 2026 are projected to be balanced, with both at around $7.7 billion.
“At an oil price of $65 per barrel, no reduction in reserves is expected. Thus, the country’s financial stability remains strong,” he said.
As of the same date, 28.4% of Azerbaijan’s external government debt was in Eurobonds issued on international financial markets, and their volume has remained unchanged since the beginning of the year, the minister added. (Editing by Mark Potter)
