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.”