Prime Minister of Kyrgyzstan Akylbek Zhaparov instructed the banks with state shares to consider the possibility of opening branches in Russia to attract funds of migrant workers.
"We could attract funds of migrant workers. Now each of the state-owned banks is tasked with opening branches not only in the Russian Federation, but also in other countries with the appropriate level of service," he said Tuesday in Bishkek during the "Migration and development: prospects and new opportunities" forum. According to the head of the government, these are RSK Bank, Aiyl Bank, Keremet Bank and the Development Bank.
"According to studies, our migrants spend about 30% of their earnings on living expenses, 30% is sent home and about 30% of the money is kept in deposits in banks of the countries of residence," Zhaparov continued. In his opinion, depositing money in Kyrgyz bank branches would make it easier for migrants to "buy housing at home".
In addition, migrant workers from Kyrgyzstan often invest their earnings in various business projects in the republic. "Remittances have a significant multiplier effect, raising the level of income in the economy beyond the remittance-receiving households. More importantly, migrants become agents of innovation and new technologies between countries. Thus, migration is one of the most important factors of development," said the head of the cabinet.
He stressed that over the past five years, the annual volume of remittances to Kyrgyzstan from migrant workers exceeds $ 2 billion, which is almost a third of the country's GDP. According to official data, 700,000 to 1 million Kyrgyz citizens are currently working in Russia alone.
GSV "Russia - Islamic world"
Photo: Public Domain
Based on materials from TASS