IFAD, EU and Hamkorbank join forces to transform remittances into rural business opportunities in Uzbekistan

Through a new remittance-based credit scoring model, the money sent back home from family members working abroad and the returnee savings will be recognized as proof of repayment capacity. The scoring system helps overcome some of the traditional barriers that have left many rural people out from the formal banking system due to lack of documented income or credit history.

"Recognizing remittances as a reliable source of income to prove creditworthiness can be transformational for rural families," said Pedro de Vasconcelos, Manager of the Financing Facility for Remittances at the International Fund for Agricultural Development (IFAD). "Through this partnership with Hamkorbank, we are piloting an innovative solution within the Central Bank's regulatory sandbox that can serve as a model not only for Uzbekistan, but for the wider region," he added.

Co-financed by the European Union under the REMIT PRIME Central Asia Programme, this new model will turn remittance income and savings into productive investments, sustainable businesses and resilient livelihoods for rural families.

"The European Union is proud to support efforts that make financial systems more inclusive and responsive to the realities of migrant families," said Mr Christos Marazopoulos, Head of Cooperation of the Delegation of the European Union to Uzbekistan. "Through the EU's Global Gateway strategy, we are fostering innovative solutions, like recognising the value of remittances in credit scoring and supporting rural entrepreneurship to unlock economic opportunities for communities. This project is a prime example of how Global Gateway invests in people, resilience, and sustainable growth."

Hamkorbank serves nearly 900,000 remittance recipients - around 20 per cent of Uzbekistan's market - and, with its strong rural presence, is well positioned to expand financial inclusion and scale innovative solutions nationwide.

"As one of Uzbekistan's leading banks serving remittance clients, we see first-hand the potential of migrant families to become rural entrepreneurs if they are given access to the right financial tools," said Hikmatullo Alikhonov - Chief Risk Officer (CRO), Deputy Chairman of the Management Board of Hamkorbank. "This project allows us to expand services to underserved rural areas and introduce an innovative credit scoring model that can unlock opportunities for many families."

In Uzbekistan, remittances remain a vital lifeline for many families, totalling US$14.8 billion in 2024, representing well over 10 per cent of the country's GDP. Yet rural communities and returnees face structural barriers to credit and business support, often leading to informal employment or re-migration. Uzbek REMIT aims to reverse this trend in line withUzbekistan's National Development Strategy 2030, which prioritizes the economic reintegration of returnees.

Complementing the financial component, the initiative will provide 900 rural residents-at least half women-with business and financial literacy training, while 100 participants will engage in one-on-one mentorship to launch or expand their businesses in sectors spanning agriculture, agro-processing, transport and rural services.

Note to editors:

This initiative builds on IFAD-EU-supported efforts in Tajikistan and the Kyrgyz Republic that transform remittance flows into savings, investment, entrepreneurship and climate-resilient rural development. A new lending product is expected to channel EUR 4.5 million in tailored credit to rural remittance recipients and returnees, while generating evidence to guide broader financial sector reforms.

Funded under the EU's REMIT PRIME Central Asia Programme (2024-2027), the EUR 6 million initiative aims to maximize the developmental impact of remittances across Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan.

About Hamkorbank: Hamkorbank is one of Uzbekistan's largest private commercial banks with extensive experience in inclusive finance, remittance services, rural lending, and digitalization. The bank maintains a nationwide network of branches and mini-offices and serves nearly one million remittance clients. Hamkorbank is an active partner of international development institutions and currently implements IFAD's Non-Sovereign Operation on agricultural value chain development.

About the EU: The European Union is an economic and political union of 27 European countries. It is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities. It acts globally to promote sustainable development of societies, environment and economies, so that everyone can benefit.

No.: IFAD/19/2025

The International Fund for Agricultural Development (IFAD) is the only international financial institution exclusively focused on transforming rural economies. IFAD invests in rural people and their communities, building food security, shared prosperity and stability. Today, IFAD and its partners have nearly US$23 billion invested in ongoing projects that are transforming rural economies.