BAKU, August 4, 2025 — Azerbaijani President Ilham Aliyev has signed into law amendments to the country’s legislation on public debt, marking a significant shift in how the state will manage its financial obligations going forward.
The changes, approved by the Milli Majlis (Parliament) on July 14, expand the scope of the State Guarantee Fund. Under the new provisions, the fund will now be used not only to cover state debt and sovereign guarantees but also to absorb losses from unrepaid budget loans issued to state-funded entities.
This marks a strategic shift toward a more flexible and responsive debt management system, offering the government greater capacity to deal with defaults and fiscal risk.
In parallel, further amendments are being prepared for Azerbaijan’s Law on the Budget System to align the sources of funding for the Guarantee Fund with the updated framework. These legislative updates are part of broader efforts to modernize fiscal governance and enhance financial resilience amid ongoing regional and global economic uncertainties.
