A session titled “Cooperation in international finance: strengthening partnerships for economic growth” was held today as part of the Second Azerbaijan International Investment Forum in Baku, APA-Economics reports.
Minister of Finance Sahil Babayev and Chairman of the Central Bank Taleh Kazimov delivered speeches during the part of the session dedicated to the topic “Global financial outlook and regional impact.”
Sahil Babayev stated that Azerbaijan’s economy is developing on sustainable macroeconomic foundations and that the non-oil sector has secured a leading role in economic growth. It was noted that one of the main directions of medium-term fiscal policy is the gradual reduction of public finances’ dependence on oil revenues. Within this framework, the share of oil revenues in state budget revenues is expected to be reduced to 30% by 2030.
The minister emphasized that the rules-based fiscal framework is one of the main pillars of macroeconomic stability. He stated that the goal is to continuously reduce the non-oil deficit and maintain the ratio of public debt to GDP at a sustainable level over the medium term. At the same time, substantial strategic foreign exchange reserves strengthen Azerbaijan’s resilience to external shocks.
Babayev noted that strong fiscal buffers and macroeconomic stability have also enabled Azerbaijan to obtain investment-grade sovereign credit ratings from international rating agencies. The high assessment of Azerbaijan’s sovereign credit rating by Fitch Ratings and Moody’s reflects the country’s strong fiscal sustainability.
In his speech, the minister also touched upon the role of public investment in Azerbaijan’s long-term development, noting that AZN 25 billion has been allocated over the past six years for the reconstruction of the liberated territories, with the funds used to implement road, water, energy, residential and social infrastructure projects. At the same time, AZN 16 billion was spent on projects aimed at upgrading infrastructure in other parts of the country in 2021–2026.
Babayev stated that long-term and effective cooperation has been established between Azerbaijan and international financial institutions, noting that the country maintains extensive cooperation with the World Bank Group, Asian Development Bank, European Bank for Reconstruction and Development, Islamic Development Bank and Asian Infrastructure Investment Bank.
During the panel discussions held at the end of the session, participants exchanged views on the role of multilateral development banks, private investors and financial institutions in supporting Azerbaijan’s growth agenda; attracting international capital for infrastructure, industrial development and regional connectivity; credit ratings; digital payments and financial infrastructure to support market integration; and partnerships with global operators.
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