Azerbaijan is considering new foreign borrowing opportunities and state guarantees, said Azer Mursagulov, Director of the Agency for Management of State Debt and Financial Obligations under the Ministry of Finance at the “German-Azerbaijani Export Finance Conference 2025” held in Baku, APA-Economics reports.
According to him, work is ongoing on updating the state debt strategy, and in the new phase, expanding foreign borrowing opportunities will be one of the main priorities. “The target indicators for the balance of foreign and domestic debt have already been achieved. At this stage, we are exploring new borrowing opportunities to finance state-important infrastructure projects such as metro expansion, railway network development, and water and sewerage projects,” he emphasized.
Mursagulov added that although the portfolio of state guarantees has significantly decreased over the last seven years, this instrument remains an important tool for financing priority projects for the government.
“Currently, the Azerbaijani government provides state guarantees for renewable energy and water projects. In the upcoming period, opportunities for new guarantees within the framework of PPP will be considered,” he noted.
He also recalled that Azerbaijan’s investment climate has improved and that international rating agencies have upgraded the country’s credit rating to “BBB–”.
Azer Mursagulov, also touching upon the history of cooperation with German banks, stated that Azerbaijan has signed a total of 16 loan agreements with financial institutions such as KfW, Bayerische Landesbank, and Commerzbank, with government and state guarantees.
“I believe this event will be an important opportunity to further strengthen our cooperation with German financial institutions,” he emphasized.
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