BAKU - Azerbaijan is preparing a unified medium-term borrowing cap for state-owned enterprises as part of a broader effort to strengthen oversight of their debt and finances.
The size of the proposed limit has not yet been disclosed. The plans were discussed Nov. 13 at a Finance Ministry board meeting chaired by Finance Minister Sahil Babayev, according to Vesti Baku.
Officials are considering a combined debt ceiling for state enterprises over the medium term. The government also plans to improve borrowing rules, align financial statements with international standards and simplify the reporting mechanism.
New Budget Scoring System Planned for 2027
The Finance Ministry is developing a scoring methodology for preparing, executing and reporting the budgets of state-owned enterprises. The new system is expected to take effect in 2027.
The ministry said reports on the financial performance of 10 state enterprises for the first quarter of 2026 and 22 enterprises for the second quarter have already been prepared. Analysts are now reviewing another 35 enterprises for the third quarter.
A digital monitoring system for state enterprises has been launched to collect the reports. Data forms have been approved and employees have received training. Babayev instructed officials to prepare the documents required to introduce the new mechanisms.
The government has not yet published the amount of the overall debt cap or a list of enterprises that would be covered. The proposal therefore remains a planned reform of borrowing oversight rather than an already established restriction.