Over 800,000 Kyrgyz people, including migrants, their families, returnees, and aspiring migrant workers, will be able to turn remittances into financial opportunities through a new partnership between the International Fund for Agricultural Development (IFAD) and Kompanion Bank. The initiative is part of the regional REMIT PRIME Central Asia Programme, co-funded by the European Union (EU).
Remittances are a vital source of income in Kyrgyzstan, accounting for 14% of the country’s GDP. In rural areas, one in four people depend on money sent home by relatives working abroad. These funds help cover daily needs and provide opportunities for education, entrepreneurship, and housing.
The programme will introduce new digital remittance channels from Europe, Türkiye, South Korea, and the United States. Transfers will be faster, cheaper, and integrated into the Kompanion mobile app, which will be upgraded with a smart financial assistant to help users manage budgets, track spending, and make financial decisions.
The initiative also includes tailored deposit accounts, loan options, and training for migrant families and returnees. Sessions will cover financial literacy, digital safety, household budgeting, and sustainable agricultural practices.
“With support from the EU and IFAD, we aim to turn remittances into a launchpad for personal, family, and economic growth,” said Margarita Cherikbaeva, CEO of Kompanion Bank.
Pedro de Vasconcelos, IFAD, said the programme ensures that remittances become “a gateway to meaningful financial inclusion,” offering digital tools, tailored products, and financial literacy training to help families secure their future.
“This partnership is an investment in communities, women, and future generations, harnessing the development potential of remittances and promoting economic empowerment in rural areas,” an EU spokesperson added.
The International Fund for Agricultural Development (IFAD) is a UN specialized agency based in Rome that invests in rural communities. Since 1978, it has provided over US$25 billion in grants and low-interest loans to help reduce poverty, improve food security and nutrition, and strengthen resilience in developing countries.
The European Union has partnered with Kyrgyzstan since its independence in 1991. Between 2014 and 2020, the EU provided €263mn in support, focusing on sustainable development, education, rule of law, rural development, infrastructure, and small and medium-sized enterprises (SMEs).
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)