Azerbaijan’s Foreign Debt Increased by 5.1 % in 2014

Azerbaijan’s Foreign Debt Increased by 5.1 % in 2014

The foreign state debts of Azerbaijan made 6,380 billion dollars (5,005 billion manat) and the ratio of the foreign state debts on the Gross Domestic Product (GDP) was 8.5 percent for October 1, 2014. The country’s foreign debt increased by 5.1 % in 2014. The total debt was 4,753 billion manat and share of the debt in GDP was 8.2 % in January, 01, 2014.

Ministry of Finance reports that 7.4% of the borrowings have been extended for up to ten years, 61.3% for up to twenty years, while 31.3% for over twenty years.

Loans borrowed as foreign state debts for 1 October 2014 were in the following currencies: SBR (International Monetary Fund Special Borrowing Right) – 10.4 percent, but in currencies: USD – 63.7 percent, Euro – 21.7 percent, Japanese yen – 2.2 percent, Islamic dinar – 0.8 percent, Saudi rial – 0.5 percent, UAE dirham – 0.5 percent and Kuwaiti dinar – 0.2 percent.

Funds involved mainly from the World Bank, Japanese International Cooperation Agency, Asian Development Bank, Islamic Development Bank, European Bank for Reconstruction and Development and other financial institutions were allocated for support of economic reform programs, restoration and reconstruction of infrastructure, including construction of roads, improvement of water supply in the regions, improvement of railway transport services, industry, etc.

Meanwhile, Azerbaijan Central Bank loses currency reserves 4 months at a run. The Central Bank of Azerbaijan (CBA) reports that its currency reserves kept on falling in November as well as between August and October. The CBA reports that as of 1st December 2014 its currency reserves totaled $14.996 billion versus $15.033 billion by 1 November, $15.04 billion by 1 October, $15.19 billion by 1 September, $15.193 billion (absolute record) by 1 August, $14.15 billion by 1 January 2014 and $11.69 billion by 1 January 2013.

Decline of currency reserves reached 0.25% ($37.3 million) for November. Nevertheless, for the past term of 2014 they grew by 5.97% ($844.3 million).

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