ADB, ITFC consider expanding risk-sharing ties to support Middle Corridor

The Asian Development Bank (ADB) and the International Islamic Trade Finance Corporation (ITFC) may explore expanding their cooperation on risk mitigation mechanisms for the Middle Corridor, ITFC Chief Operating Officer Nazim Nordali has said.

Speaking during panel discussions at the Islamic Development Bank (IsDB) Group’s 51st Annual Meetings in Baku, Nordali said that commercial banks’ engagement in the Middle Corridor is largely shaped by perceptions of risk, including differences in jurisdictions, documentation standards, and logistical stability, Caliber.Az reports per local media. 

“Banks are naturally risk-averse, so their interest in this area remains limited. This is where multilateral institutions play a crucial role. We don't wait for the situation to resolve itself; we create conditions to involve other financial structures,” he said.

Nordali noted that closer cooperation between ITFC and ADB could help build a more secure financing environment through insurance and guarantee instruments, thereby attracting additional investment into corridor-related projects. He also stressed the importance of standardising documentation and harmonising procedures to facilitate trade flows.

“Through joint efforts, multilateral institutions, commercial banks, and participating countries can overcome existing barriers and give momentum to the Middle Corridor's development,” he added.

By Sabina Mammadli