BAKU, Azerbaijan, April 30. Azerbaijan's Rabitabank OJSC and the International Islamic Trade Finance Corporation (ITFC) have signed an agreement for the development of the private sector in the amount of $15 million, Trend reports.
According to the OJSC, the agreement was signed by the Chairman of the Bank's Board, Aydin Huseynov, the General Director of ITFC, as well as the Acting General Director of the Islamic Corporation for the Development of the Private Sector (ICD, a part of the Islamic Development Bank Group, or IsDB), Hani Salem Sonbol.
The bank pointed out that the agreement entails the creation of commercial financing mechanisms to meet the diverse needs of private sector clients, with support for small and medium-sized businesses (SMBs) in accordance with Islamic financial principles.
Additionally, the parties discussed cooperation with IsDB in the direction of the country's economic development, trade finance in Azerbaijan, and expanding opportunities for supporting SMBs.
An exchange of views also took place on further joint steps in this direction, with special attention given to the role of the corporation in the application of Islamic finance.
To note, Rabitabank and ITFC, part of the Islamic Development Bank (IsDB) group, signed a contract worth $10 million on the letter of credit confirmation mechanism in September 2023.
This agreement is intended to help Rabitabank expand its trade finance business in Azerbaijan for the private sector, especially SMBs.