BAKU, Azerbaijan, June 16. The International Islamic Trade Finance Corporation (ITFC), which is a part of the Islamic Development Bank Group, stands ready to provide its trade financing support to small and medium-sized enterprises in Azerbaijan, particularly in the country’s liberated territories, IsDB said in its report on Azerbaijan.
“ITFC continues to play an important role in supporting Azerbaijan’s trade and private sector development. The ITFC’s support to Azerbaijan covers financial institutions and corporations,” said the IsDB, adding that several Azerbaijani financial institutions utilize ITFC’s Murabaha financing and lines of financing.
The report reveals that the ITFC’s total approvals in the country amount to US$93.4 million.
“Out of the ITFC-financed 15 projects, 13 have been completed and two are still under implementation, with a value of US$40 million. Building on its long-standing cooperation with Azerbaijan, the ITFC stands ready to provide its trade financing support to small and medium-sized enterprises, particularly in the country’s liberated territories. The Corporation is also prepared to consider financing under a sovereign structure, with a tenor of up to three years, either directly with the relevant Ministry as beneficiary or through other entities, with a government guarantee. This financing could be implemented in close coordination with the Small and Medium Business Development Agency, to stimulate entrepreneurship and local economic activity,” says the IsDB.
The report recalls that in 2023, the ITFC reactivated its trade financing operations in Azerbaijan by signing a US$10 million facility with Rabitabank. “The arrangement aims to meet both the funded and unfunded trade financing needs of private sector clients, including SMEs. In parallel, the ITFC is engaged in discussions with other commercial banks in the country to explore new avenues for cooperation under its line of financing mechanism in order to further expand access to Islamic trade finance across the country.“
IsdB further notes that the ITFC plays a pivotal role in promoting regional economic cooperation and strengthening trade connectivity among the member countries.
“One of the ITFC’s flagship initiatives in this area is the Trade Connect Central Asia+ Program which was officially launched in 2024, during the Third Tashkent International Investment Forum held in Uzbekistan. The program is spearheaded by the ITFC. It is a flagship regional initiative designed to strengthen economic integration, promote inclusive growth, and stimulate trade among six beneficiary countries, namely Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. The TCCA+ aims to unlock the potential of intra-regional trade and forge stronger linkages with external markets. The program promotes inclusive economic growth, deepens regional cooperation, and enhances trade connectivity, particularly among the member countries of the Organisation of Islamic Cooperation in Central Asia and beyond.”
