Azerbaijan needs to borrow $5 billion from worldwide credit score establishments within the coming years for big infrastructure tasks, together with in territories secured in a lightning army offensive in September, the finance minister informed Reuters.
Azerbaijani forces regained management of the mountainous area of Nagorno-Karabakh, the place ethnic Armenians had loved de facto independence for many years, prompting a minimum of 100,000 ethnic Armenians to flee.
“Very huge duties stand earlier than us,” Finance Minister Samir Sharifov mentioned in an interview. He mentioned the duties in query have been linked with the reconstruction and restoration of land now below Azerbaijan’s management, one thing that will additionally enhance the nation’s financial development.
Peace talks between Baku and Yerevan are ongoing, with the 2 sides persevering with negotiations on the demarcation of their 1,000 km (620 mile) border, which stays closed and closely militarised.
“There are a selection of huge tasks within the transport infrastructure discipline, that could possibly be financed by way of attracting borrowed assets,” Sharifov mentioned.
“Total, we’re speaking about further borrowing of $5 billion.” Azerbaijan’s public debt stood at $6.1 billion in the beginning of 2024.
Sharifov mentioned Baku would repay $1.4 billion of this by the tip of the 12 months after which in the end plans to extend public debt to $10 billion.
“We won’t subject Eurobonds. Almost certainly will probably be venture financing,” Sharifov mentioned, itemizing the World Financial institution, the European Financial institution for Reconstruction and Improvement, the Asian Infrastructure Funding Financial institution, and the Islamic Improvement Financial institution among the many attainable sources of funds.
He mentioned the financing would doubtless come over the course of 4 to 5 years.