The European Union, International Fund for Agricultural Development (IFAD), and Hamkorbank, one of Uzbekistan’s leading banks, have launched an initiative to strengthen rural entrepreneurship and expand financial inclusion across the country.

The program targets nearly 4,000 households, including remittance recipients and returning migrants, by introducing a new credit scoring model that considers family remittances and savings as proof of creditworthiness, The Caspian Post reports via Uzbek media.

This approach aims to remove traditional barriers preventing rural residents from accessing formal banking due to lack of official income or credit history.

Pedro de Vasconcelos, manager of IFAD’s Financing Facility for Remittances, said:

"Recognizing remittances as a reliable source of income can unlock new opportunities for rural families." The pilot program is being implemented in collaboration with Hamkorbank under the Central Bank’s regulatory sandbox, with potential to serve as a model for the wider region.

Co-financed by the EU through the REMIT PRIME program, the initiative seeks to transform remittance income into productive investments, sustainable businesses, and stable livelihoods. Christos Marazopoulos, Head of Cooperation of the Delegation of the European Union to Uzbekistan, emphasized that the project supports financial system inclusivity and aligns with the EU Global Gateway strategy.

Hamkorbank, which serves nearly 900,000 remittance recipients (around 20% of the Uzbek market), will expand services to underserved rural areas and implement the innovative credit scoring model, enabling new business opportunities for migrant families.

The program also includes entrepreneurship and financial literacy training for 900 rural residents, with at least 50% women participants, and mentorship for 100 participants to launch or grow businesses in agriculture, agro-processing, transport, and other services.

With remittances totaling $14.8 billion in 2024-over 10% of Uzbekistan’s GDP-the initiative aims to reduce reliance on informal employment or repeated migration and support economic reintegration of returning migrants under Uzbekistan’s National Development Strategy 2030.