New IFAD–Kompanion Bank Partnership to Transform Remittances in Kyrgyzstan

More than 800,000 Kyrgyz people, including migrant workers, their families, returnees, and aspiring migrants, are set to benefit from a major new initiative that will convert remittances into a powerful tool for financial empowerment, rural development, and long-term prosperity.

The International Fund for Agricultural Development (IFAD), in partnership with Kompanion Bank CJSC, one of Kyrgyzstan’s largest commercial banks, today announced the launch of a programme under the REMIT PRIME Central Asia initiative, with co-funding from the European Union (EU).

This programme seeks to unlock the untapped development potential of remittances, the money sent home by migrant workers, which currently account for 14 percent of Kyrgyzstan’s GDP. In rural areas, one in four Kyrgyz citizens depend on these funds, which are often used to cover food, housing, and healthcare. The new programme aims to ensure that remittances also become a springboard for investment, entrepreneurship, and future security.

A Lifeline with Transformative Potential

Kyrgyzstan is one of the world’s most remittance-dependent economies, with hundreds of thousands of its citizens working abroad in Russia, Türkiye, South Korea, the European Union, and the United States. These workers send money home to support their families, but much of it is consumed immediately, leaving limited scope for long-term financial stability.

“This initiative is about changing that dynamic,” said Pedro de Vasconcelos, Manager of the Financing Facility for Remittances at IFAD. “By partnering with Kompanion Bank, we are ensuring that remittances become a gateway to meaningful financial inclusion. With digital remittance channels, tailored financial products, and targeted financial literacy training, we are helping families turn remittances into long-term security and sustainable rural development.”

Kompanion Bank’s Digital Drive

Margarita Cherikbaeva, CEO of Kompanion Bank, stressed that the institution’s priority is to design solutions that meet the needs of migrant families. “We have always treated migrants and their families with special care and respect. With support from the European Union and in partnership with IFAD, we aim to turn remittances into a launchpad for personal, family, and economic growth. Accessible, easy-to-use tools such as the upgraded Kompanion mobile app and innovative financial products will make this possible.”

The programme will introduce digital remittance corridors from Europe, Türkiye, South Korea, and the United States. Transfers will be integrated into the Kompanion mobile app, ensuring they are faster, cheaper, and more reliable.

The app will also feature a “smart financial assistant”, a digital pocket expert that guides households in budgeting, tracking expenses, and making informed financial decisions.

Beyond Transfers: Building Savings and Security

The initiative will go further by offering remittance-linked savings accounts and loan products, enabling families to shift from mere consumption toward savings, investments, and entrepreneurship. By helping households build assets and invest in businesses or education, the programme will foster long-term resilience.

In addition, training sessions for migrants, returnees, and families will focus on:

• Financial literacy and resilience

• Budget management and household planning

• Digital safety in financial transactions

• Efficient use of banking products

• Sustainable agricultural practices for rural households

These measures aim to transform remittances into a catalyst for sustainable livelihoods, empowering families to break cycles of dependency and strengthen rural economies.

European Union’s Commitment

A spokesperson for the European Union emphasized the programme’s human-centered vision: “The EU is proud to support initiatives that harness the development potential of remittances and promote economic empowerment in rural areas. This partnership is an investment in communities, in women, and in future generations.”

A Model for Inclusive Growth

The IFAD–Kompanion Bank partnership aligns with IFAD’s broader mission of promoting inclusive growth and rural transformation in Central Asia. By linking remittances to financial services, the programme ensures that migrants’ sacrifices abroad translate into lasting benefits at home.

Ultimately, the initiative represents a shared commitment by IFAD, the EU, and Kompanion Bank to turn remittances into more than survival funds—they will become foundations for opportunity, resilience, and prosperity for Kyrgyzstan’s people.