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Azerbaijan’s debt shrinks as reliance on foreign credit fades
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AzerNews - News from Azerbaijan, Business, Energy, Analysis
In the calm arithmetic of fiscal discipline, Azerbaijan has been conducting such a performance, replacing external obligations with self-reliance.
Institutions like the Asian Development Bank, the World Bank, and the European Bank for Reconstruction and Development stepped in as key architects of physical infrastructure.
The World Bank saw its outstanding credit fall by 19.6 percent to 593.6 million dollars, reducing its relative weight from 14.7 percent to 12.9 percent.
By curbing its reliance on foreign capital, Azerbaijan insulates its economy from external currency fluctuations, global interest rate hikes, and foreign exchange volatility.
When foreign obligations represent a mere 6 percent of annual economic output, traditional risks of external debt distress virtually vanish.