Moldova: First ever international remittance transfer through a Saving and Credit Association

In support of International Day of Family Remittances 2020, the Republic of Moldova has launched the first international money transfer through Savings and Credit Associations of Moldova (SCAs), the local financial intermediary with the greatest outreach in rural areas.

Through an IFAD-supported project implemented by the National Commission for Financial Markets (NCFM), selected SCAs were assisted to become agents of cross-border remittance transfers. The goal of this IFAD project is to stimulate the generation of savings from remittance recipients and create an incentive to provide loans linked to remittances in the financial institutions with the greatest presence in rural areas.

This June 16th, the SCA “Stefanesti”, which currently extends credit and deposit products to its over 1.2 thousands rural members, has been the first SCA in Moldova ever to pilot the new service: international remittances. The SCA is based in a rural village in the Northern region of the country, an area of high migration in Moldova. As such, enabling SCAs to manage international remittances was a priority for many remittance families.

Vangheli Ludmila, a teacher in the local school, has been the first one to receive money from his son Vangheli Mihai, who works in the United States as a truck driver.