Fitch: Azerbaijan's government debt to remain among lowest for investment-grade sovereigns

Azerbaijan's government debt, which will be at around 21% by 2027, will remain among the lowest for Fitch-rated investment-grade sovereigns, according to Fitch Ratings, cited by Report.

The agency noted that external debt has declined in absolute terms in recent years and net increases will depend on execution of projects in water and transport.

"External guarantees declined to USD3 billion in 1Q26 after the Eurobond repayment by Southern Gas Corridor," the agency said.

Azerbaijan's government debt stood at 24.4647 billion manats as of April 1, 2026, equivalent to 18.7% of the country's projected GDP for the current year.

According to the country's Ministry of Finance, this figure was 8.1% lower than on April 1, 2025.

Of the total government debt, $4.6893 billion, or 7.9718 billion manats, accounted for external debt (6.1% of GDP), while 16.4929 billion manats represented domestic public debt (12.6% of GDP).

Compared with the same period a year earlier, external and domestic government debt decreased by 7.6% and 8.4%, respectively.