BAKU, Azerbaijan, June 18. The International Islamic Trade Finance Corporation (ITFC) will prioritize a private sector-led growth in Azerbaijan in the next phase of engagement, Anvar Nigmatov, Senior Manager, Trade Finance for Türkiye and CIS, ITFC, said in an exclusive interview with Trend on the sidelines of the Islamic Development Bank Group Annual Meetings 2026 in Baku.
Priority sectors in the next phase of engagement
Nigmatov noted that ITFC’s cooperation with Azerbaijan is constructive and in a growing stage.
"Total financing for Azerbaijan stands at USD 103 mln, and expected to grow over the coming years. Our engagement in Azerbaijan to date has focused on private sector trade finance support and capacity building, particularly in Islamic finance. The next phase will prioritize private sector-led growth through partnership with local banks, leveraging lines of finance and syndications, as well as engagement with government and government owned institutions," he said.
He pointed out that key sectors expected for expansion include food security, energy, manufacturing and SMEs, reflecting both national priorities and ITFC’s global portfolio.
"Instruments such as Murabaha-based trade finance, Letter of Credit (documentary credit) and Letter of Credit confirmation, and structured solutions will gain traction, especially considering the latest initiatives of Azerbaijan towards development of Islamic Finance. We also see increasing importance of trade facilitation. Overall, our direction is toward integrated trade solutions combining financing with development impact," Nigmatov added.
Medium-term trade finance needs of CIS economies
ITFC's senior manager noted that CIS economies face growing trade finance needs driven by supply chain reconfiguration and shifting trade routes.
"Access to finance remains a critical constraint, particularly for SMEs and cross-border transactions. Global estimates suggest a significant trade finance gap, affecting developing markets disproportionately. In CIS region, key gaps are expected in working capital finance, risk mitigation, and export finance. There is also a shortage of long-term funding for trade-enabling infrastructure and logistics. SMEs remain underserved, with high rejection rates and limited access to international banking networks. ITFC sees the opportunity in bridging these gaps through partnerships with governments, corporates and local banks," he explained.
ITFC's role in strengthening the Middle Corridor
Nigmatov noted that ITFC can play a catalytic role in connecting infrastructure with actual trade flows along the Middle Corridor.
"While infrastructure investments are essential, trade finance is critical to enable businesses to use these routes. ITFC contributes through trade finance lines, syndications, and working capital solutions for corridor users. The impact of these instruments is maximized when they are coupled with a soft component such as the trade related technical assistance and trade development programs, extended by ITFC to partners and countries. In terms of innovation, ITFC increasingly leverages resource mobilization, and co-financing models and blend finance in some instances. ITFC can contribute to enhancing the commercial viability of the corridor and making it inclusive, especially for SMEs," he added.
Enhancing trade connectivity between Türkiye and CIS countries
ITFC's senior manager pointed out that Türkiye plays a central role as a regional trade hub linking CIS markets to global supply chains.
"ITFC has already provided significant financing in Türkiye to support export-oriented SMEs. Going forward, we aim to strengthen cross-border trade flows between Türkiye and CIS countries through banking partnerships. This includes trade finance lines, syndications, and LC confirmation services. At a regional level, initiatives such as Trade Connect Central Asia+ (TCCA+) provide a platform for cooperation between Turkiye and the region. Although main target of the TCCA+ is Central Asia and Azerbaijan, ITFC will engage Türkiye in the execution of the activities within the initiative directly linked to trade," he said.
Nigmatov noted that these programs aim to improve trade cooperation, reduce trade costs, and enhance connectivity.
"We also see potential for greater collaboration with international partners to scale these efforts," he added.
New trade finance programs for CIS region and Azerbaijan
Nigmatov pointed out that looking ahead, ITFC is focusing on integrated trade solutions to support resilience and growth.
"This includes expanding SME-focused financing through partner banks, combined with capacity-building programs. We are also advancing initiatives in paperless systems, and supply chain efficiency. Strengthening food and energy supply chains remains a core priority. In addition, ITFC is working on enhancing risk-sharing and mobilization mechanisms to crowd in private capital. Regional programs like TCCA+ will continue to support cross-border trade and value chain development. Overall, our strategy is to combine financing, partnerships, and trade development to enable sustainable trade growth," said ITFC's senior manager.
He recalled that since 2024 ITFC re-activated its line of financing business in Azerbaijan, where partnerships with two local banks have been established to support the trade financing needs of private sector, especially SMEs.
"ITFC has extended USD 10 million to Rabitabank and USD 10 million to Turanbank aimed at enabling the SMEs to access trade finance solutions. We plan to strengthen our cooperation with other banks, which is expected to further facilitate trade flows," Nigmatov concluded.
