OSCE presents report on improving bank support for sustainable use of remittances in Kyrgyzstan

BISHKEK, 17 May 2011 – Remittances from labour migrants amount to some one billion USD annually, and commercial banks in Kyrgyzstan can do more to attract remittances and thus support the country’s economy, according to an OSCE-sponsored report that was presented to representatives of local banks and state bodies today.

“According to the report, labour migrants are ready to spend the money they’ve earned on launching new businesses and creating job opportunities,” said Lilian Darii, the Deputy Head of the OSCE Center in Bishkek, at the presentation. “This readiness needs to be taken up by commercial banks for the benefit of Kyrgyzstan’s economy.”

The report, which focuses on how banks can improve their scope of products to make better use of labour migrant remittances, was prepared by a team of researchers who conducted a range of interviews with labour migrants, commercial banks and microcredit companies in Kyrgyzstan, Kazakhstan, and Russia.

Irina Lukashova, one of the experts involved in the report, said: “Creating the conditions to attract migrant remittances to the banking sector is economically beneficial for all – the recipients of remittances, commercial banks and the economy in general.”

The team surveyed 1,200 households of labour migrants and collected quantitative data on the use of various banking products, such as bank cards and deposits. In 2010, migrant remittances transferred through official money transfer systems accounted for some 20 per cent of the gross domestic product of Kyrgyzstan.