This paper explores the impact of the COVID-19 pandemic on past and potential future trends in international economic migration and remittances. The first section focuses on the general impact of the pandemic, considering topics such as changes in the earnings of migrant workers, declines in remittance flows and policy responses. The second section delves into the cost of remittances and migration patterns in six regions:
Category: Eastern Europe and Central Asia
MICROCAPITAL BRIEF: TerraPay, Visa Partner to Boost Interoperability, Digital Payments, Remittances, Financial Inclusion
TerraPay, a digital payment firm headquartered in the Netherlands, recently partnered with Visa, a US-based payment technology company, to increase the accessibility of contactless and other digital payments, both domestic and cross-border. Otto Williams, Visa’s Head of Strategic Partnerships, Financial Technology (FinTech) and Ventures in Central Europe, the Middle East and Africa, said the partnership will “drive seamless and interoperable financial services and
MICROCAPITAL BRIEF: ADA, Grameen Crédit Agricole Foundation Respond to COVID-19 with Information Sharing, Funding, Partnerships
Luxembourg-based NGOs ADA (Appui au Développement Autonome) and the Grameen Crédit Agricole (GCA) Foundation have launched a range of resources in response to the COVID-19 pandemic including the following:
MICROCAPITAL BRIEF: Unibank of Armenia Offers UNIMobile Mobile Banking App for Sending, Receiving Remittances via Unistream Network
Unibank, an Armenian commercial bank, recently announced that its customers can use the bank’s mobile banking apps to send and receive money transfers through Unistream, a remittance service that reaches 150,000 cash-out points in 90 countries. The apps are
MICROCAPITAL BRIEF: IIV Mikrofinanzfonds Reports Losses Under 3%; Invests $3.4m Refinancing Microfinance Institutions in Mexico, Tajikistan
Microfinance institutions in Mexico and Tajikistan recently sold packages of non-securitized loan claims for MXN 61.3 million (USD 2.66 million) and USD 750,000 and to IIV Mikrofinanzfonds, a fund managed by Germany-based Invest in Visions (IIV). The names of the microlenders have not released.
During the first four months of 2020, the two share classes of IIV Mikrofinanzfonds generated losses of 2.7 percent to 2.9 percent. This
MICROFINANCE PAPER WRAP-UP: “Financial Literacy for Migrants: Mapping and Needs Assessment,” by Heghine Manasayan et al, from CRRC-Armenia
The authors of this paper seek to understand the needs for financial education among three groups of migrants in Armenia: (1) people who moved to Armenia or within the country for work, including workers’ family members; (2) official refugees to Armenia and those moving to the country for similar reasons; and (3) Armenian citizens who migrated to another country but then voluntarily returned or were deported back to Armenia. The methodologies were group discussion with migrants and the review of government data, such as
MICROCAPITAL BRIEF: Singapore Offers $1.8m Global FinTech Innovation Challenge for Responses to COVID-19, Climate Change
The Monetary Authority of Singapore (MAS), Singapore’s central bank, is hosting a competition to encourage financial technology (fintech) firms to address the changes in the business world caused by COVID-19 as well as to promote innovation relating to climate change, including in “green finance.” The competition, which is named the Global FinTech Innovation Challenge, is composed of the MAS Global FinTech Hackcelerator and the MAS FinTech Awards. The finalists for both competitions will be selected in September, and the winners
MICROCAPITAL BRIEF: Via Atlas, CGAP Begins Releasing Results from Biweekly “Pulse” Survey of Microfinance Institutions (MFIs) on COVID-19 Impact
In an effort to understand the needs of microfinance institutions (MFIs) and their clients during the COVID-19 pandemic, the US-based NGO CGAP (Consultative Group to Assist the Poor) recently launched a biweekly survey called the “Global Pulse Survey of Microfinance Institutions.” CGAP is releasing the results on the Atlas data platform, which is a service of Italy-based MFR (MicroFinanza Rating), in the form of 13 charts. These charts can be manipulated to group the data by
MICROCAPITAL BRIEF: Azerpost, IFC Expanding Rural Mobile Financial Services with Postal Service to Act as Agent for Banks in Azerbaijan
Azerbaijan’s postal services company, Azerpost, is partnering with the World Bank Group’s International Finance Corporation (IFC) to boost financial literacy in the country and introduce a mobile wallet service, with a particular focus on reaching rural areas. The effort, which is supported by the State Secretariat for Economic Affairs of Switzerland (SECO), builds on the recent rollout of
MICROFINANCE PAPER WRAP-UP: “2020 Annual Impact Investor Survey,” by Dean Hand et al, published by the Global Impact Investing Network (GIIN)
The 10th edition of this survey includes responses from 294 impact investors, those that seek to “generate positive, measurable social and environmental impact alongside a financial return.” From the data the authors have collected, they reach the following conclusions:
SPECIAL REPORT: COVID-19 Edition of Financial Inclusion Compass Survey Launches – Looking at Challenges and Priorities of a Sector Under Threat – An Invitation to Participate
From 
the European Microfinance Platform (e-MFP): e-MFP has launched the third e-MFP survey of financial inclusion trends, but as a special edition focused solely on the challenges and priorities facing the sector as a result of the COVID-19 public health and economic crisis. Several months into this global crisis, with its critical threat to vulnerable populations, financial inclusion providers and the entire ecosystem that supports them, the scale of the challenges ahead is becoming increasingly clear, and stakeholders can think not just about the immediate effects, but their priorities in the medium term as the sector recovers from this and puts in place measures to
MICROCAPITAL BRIEF: 26 Inclusive Finance Players Pledge to Support Microfinance Institutions (MFIs), Clients Throughout Pandemic
At the initiative of the Luxembourg-based Grameen Crédit Agricole (GCA) Foundation, microfinance lenders and other operators in the inclusive finance sector have agreed to a set of “Key Principles to Protect Microfinance Institutions and Their Clients in the COVID-19 Crisis.” The commitment involves measures including: operating in a customer-centric manner, protecting staff members, sharing
MICROCAPITAL BRIEF: Ipak Yoli Bank of Uzbekistan, IFC Collaborate to Manage Currency Risk, Increase Local-currency Financing for SMEs
The International Finance Corporation (IFC), a member of the World Bank Group, and Uzbekistan’s Ipak Yoli Bank recently signed an International Swaps and Derivatives Association Master Agreement under which they plan to execute currency-swap transactions. Saidabror Savdakhmedov, Chairman of the Board of Ipak Yoli, explained that the goal is to “help expand our lending to customers in local currency, while effectively mitigating financial risks and managing our currency-risk exposure.” In particular, the bank plans to increase local-currency financing to small and medium-sized
MICROCAPITAL BRIEF: Garanti BBVA of Turkey Borrows $699m from EBRD, IFC, Commercial Banks with Elements for Renewable Energy, MSMEs, COVID-19 Relief
Garanti BBVA, a Turkish subsidiary of Spain’s Banco Bilbao Vizcaya Argentaria (BBVA), recently entered loan agreements with the UK-based European Bank for Reconstruction and Development (EBRD), the World Bank Group’s International Finance Corporation (IFC), and a syndicate of unidentified commercial banks. The sizes of the first two loans
MICROFINANCE EVENT: CIS Islamic Banking and Finance Forum; POSTPONED; Tashkent, Uzbekistan
Originally, scheduled for August 13 to 15, 2020, this event has been postponed due to COVID-19. The new dates have not been announced. The first day of this event is
MICROCAPITAL BRIEF: 40 Funders Commit $75m via World Economic Forum COVID Response Alliance for Social Entrepreneurs
The World Economic Forum, a Switzerland-based nonprofit, recently convened the COVID Response Alliance for Social Entrepreneurs, through which 40 organizations are aligning their efforts to reduce the economic and other impacts of the COVID-19 pandemic. These 40 organizations support 15,000 entrepreneurs who have served a total of 1.5 billion customers in 190 countries by “protecting livelihoods; mitigating millions of tonnes of carbon dioxide; improving access to health, sanitation, education and energy; [and having] driven social inclusion movements for the disabled, homeless or those with refugee status.”
The alliance members have committed a total of USD 75 million in response to the pandemic. In addition, they are working together to assess needs; increase recovery funding; coordinate legal, technological and
MICROCAPITAL BRIEF: Center for the Advancement of Social Entrepreneurship (CASE) Offers Covidcap.com Database of $1t in Cash Relief for Small Businesses Impacted by COVID-19
The US-based Center for the Advancement of Social Entrepreneurship (CASE) recently created a database of funding sources for small businesses needing assistance because of the COVID-19 pandemic. These listings include 550 funding sources in 62 countries offering a total of approximately USD 1 trillion. This funding takes the form of loans and grants and is available to
MICROCAPITAL BRIEF: 9 Microfinance Investment Vehicles Coordinate Response to Effects of Pandemic on MFIs, MSMEs in 80 Countries
The COVID-19 pandemic and efforts to reduce its health impacts have had major negative economic consequences for micro-, small and medium-sized enterprises (MSMEs). These enterprises thus are having difficulty repaying the loans they have outstanding from microfinance institutions (MFIs) and other retail lenders, leading to liquidity challenges for these lenders. In response, nine investors in these lenders, which have an aggregate of USD 15 billion invested in 80 low- and middle-income countries, are working together to support the long-term viability of the retail financial services providers (FSPs).
The nine investors, which manage a range of microfinance investment vehicles (MIVs) and other funds seeking to generate positive social impact, have arrived at a non-binding agreement to