ADB, ITFC may expand risk management co-op for Middle Corridor

The Asian Development Bank (ADB) and the International Islamic Trade Finance Corporation (ITFC) may consider expanding their partnership in risk mitigation for the Middle Corridor, ITFC Chief Operating Officer Nazim Nordali said during panel discussions at the Islamic Development Bank (IsDB) Group's 51st Annual Meetings in Baku, Report informs.

Nordali noted that commercial banks' approach to the Middle Corridor is shaped by risk perception – differences in jurisdictions, documentation, and logistical stability: "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 emphasized that ITFC and ADB could build a more secure financing environment through insurance and guarantee mechanisms, attracting additional resources for corridor projects. He also highlighted the need for standardized documentation and harmonized procedures to enable effective trade.

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