SURVEY FINDINGS BASELINE SURVEY ON REMITTANCE BENEFICIARIES’ FINANCIAL BEHAVIORS IN EAST EUROPE AND CENTRAL ASIA Payment Systems Development Group SECO-funded Remittances and Payments Program This paper is a product of the Payment Systems Development Group, Finance and Markets Global Practice, World Bank. IPSOS Strategic Marketing, Belgrade team, completed the survey on behalf of the World Bank. The State Secretariat of Economic Affairs (SECO) of Switzerland provided funding for the survey in the context of the Remittances and Payments Program. Authors may be contacted at paymentsystems@worldbank.org. 1 Content 1. Introduction ........................................................................................................................................ 5 2. Executive Summary ................................................................................................................................. 7 3. Background on Methodology ................................................................................................................... 9 3.1 Survey Sample and Population Profile .......................................................................................................... 9 3.2 Overview of the methodology .................................................................................................................... 10 4. Overview of migration trends within six selected countries .................................................................... 12 4.1. Albania........................................................................................................................................................ 12 4.2. Bosnia and Herzegovina ............................................................................................................................. 12 4.3. Kosovo ........................................................................................................................................................ 12 4.4. Serbia.......................................................................................................................................................... 13 4.5. Kyrgyzstan .................................................................................................................................................. 13 4.6. Tajikistan .................................................................................................................................................... 13 5. Key Insights ........................................................................................................................................... 14 5.1. Characteristics of remittances ................................................................................................................... 14 5.2. Remittance channels and providers........................................................................................................... 21 5.3. Impact of remittances on household income ............................................................................................ 29 5.4. Sending remittances abroad ...................................................................................................................... 33 6. Conclusions ........................................................................................................................................... 34 7. Annexes ................................................................................................................................................ 35 7.1. Background on Methodology ..................................................................................................................... 35 7.2. Sample allocation ....................................................................................................................................... 46 7.3. Migration trends within 6 ECA countries ................................................................................................... 49 7.4. Survey questionnaire ................................................................................................................................. 60 7.5. Statistical tables ......................................................................................................................................... 73 7.6. Origin of remittances ............................................................................................................................... 121 7.7. Duration and frequency of remittances ................................................................................................... 122 7.8. Remittance providers and channels satisfaction ..................................................................................... 123 7.9. Usage of and access to remittances withdrawal locations ...................................................................... 129 7.10. Respondents’ general usage of bank products unrelated to remittances ............................................. 130 7.11. Accessibility and usage of ATMs and bill payment kiosks unrelated to remittances ............................ 135 7.12. Other income sources of remittance receivers...................................................................................... 140 2 Table of figures and tables Table 3.1.1. Sample size per country ........................................................................................................................................ 9 Table 3.1.2. Sample demographics per country ..................................................................................................................... 10 Figure 5.1.1.1: Origin of remittances...................................................................................................................................... 14 Table 5.1.1.1a: Origin of remittances ..................................................................................................................................... 15 Figure 5.1.1.2: Characteristic of the remittance sender's stay abroad ................................................................................... 16 Figure 5.1.1.3: Age of remittance senders.............................................................................................................................. 17 Figure 5.1.1.4: Gender structure of remittance senders per country ..................................................................................... 17 Figure 5.1.2.1: Period of remittances receipt ......................................................................................................................... 18 Figure 5.1.2.2: Changes in frequency and value of received money - reasons ....................................................................... 19 Figure 5.1.2.3: Frequency of receiving remittances................................................................................................................ 19 Figure 5.1.2.4: Regularity of receiving remittances ................................................................................................................ 20 Figure 5.2.1.1: All channels of money receipt used in the last 12 months ............................................................................. 21 Figure 5.2.1.2: The most frequently used money receipt channel .......................................................................................... 22 Figure 5.2.1.3: Time needed for receipt of remittances starting from the moment of sending ............................................. 23 Figure 5.2.2.1: Level of satisfaction with the most commonly selected method of money transfer ...................................... 24 Figure 5.2.2.2: Level of satisfaction with bank services used for money transfer .................................................................. 25 Figure 5.2.2.3: Reasons for not using banks or other financial institutions in the money transfer process ........................... 26 Figure 5.2.3.1: Locations where remittances are most frequently withdrawn....................................................................... 27 Figure 5.2.3.2: Means of transportation and average time needed to reach location to withdraw remittances .................. 28 Figure 5.3.1: Share of remittances in total household income ............................................................................................... 29 Figure 5.3.2: Influence of remittances in covering basic family needs ................................................................................... 30 Table 5.3.3: Usage of remittances – top three purposes ........................................................................................................ 30 Figure 5.3.4: Savings............................................................................................................................................................... 31 Figure 5.3.5: Frequency of saving ........................................................................................................................................... 32 Figure 5.3.6: Influence of remittances on saving.................................................................................................................... 32 Figure 7.6.1 Number of remittance senders ......................................................................................................................... 121 Figure 7.6.2 Reasons for using the most preferred method of money transfer ................................................................... 121 Figure 7.7.1a Change in frequency and value of remittances .............................................................................................. 122 Figure 7.7.1b Change in frequency and value of remittances .............................................................................................. 122 Figure 7.8.1 Fees as a percentage of total remittances amount .......................................................................................... 123 Figure 7.8.2.1: Currency of remittances ............................................................................................................................... 124 Figure 7.8.2.2a: Average amounts of remittances per year and per transaction – converted to USD ................................. 124 Figure 7.7.2.2b: Average amounts of remittances per year and per transaction – in original currencies ........................... 125 Figure 7.8.2.3: Currency of remittance ................................................................................................................................. 126 Figure 7.8.2.4: Possibility of receiving remittances in foreign currencies ............................................................................. 126 Figure 7.8.2.5: Keeping remittances received in foreign currency ....................................................................................... 127 Figure 7.8.3 Negative aspects of money transfer through banks ......................................................................................... 127 Figure 7.8.4 Usage of banks or other financial institutions in the money transfer process ................................................. 128 Figure 7.8.5 Influencing factors for converting to use of bank services from current money transfer method ................... 128 Figure 7.8.6 Financial institutions alternative to banks ....................................................................................................... 129 Figure 7.9.1 Availability of remittance withdrawal locations during work hours ................................................................ 129 Figure 7.10.1.1: Possession of bank accounts ...................................................................................................................... 130 Figure 7.10.1.2: Usage of bank accounts - % of answer YES ................................................................................................ 131 Figure 7.10.1.3: Main reason for not having bank account ................................................................................................. 131 Figure 7.10.2.1: Ownership of payment cards...................................................................................................................... 132 Figure 7.10.2.2: Usage of payment cards ............................................................................................................................. 132 Figure 7.10.2.3a: Usage of payment cards ........................................................................................................................... 133 Figure 7.10.2.3b: Usage of payment cards - frequency ........................................................................................................ 133 Figure 7.10.2.4: Reasons for not having payment cards ...................................................................................................... 134 Figure 7.10.3.1: Usage of other bank products - % of answer YES ....................................................................................... 134 Figure 7.10.3.2: Offering a loan based on payments on remittance .................................................................................... 135 Figure 7.11.1: Location of ATMs ........................................................................................................................................... 136 3 Figure 7.11.2: Usage of ATMs .............................................................................................................................................. 136 Figure 7.11.3: Reliability of ATMs ......................................................................................................................................... 137 Figure 7.11.4: Availability of bill payment kiosks ................................................................................................................. 137 Figure 7.11.5: Position of bill payment kiosks ...................................................................................................................... 138 Figure 7.11.6: Usage of bill payment kiosks ......................................................................................................................... 138 Figure 7.11.7: Usage of bill payment kiosks ......................................................................................................................... 139 Figure 7.11.8: Receiving receipt for payment ....................................................................................................................... 139 Figure 7.11.9: Reliability of bill payment kiosks ................................................................................................................... 140 Figure 7.12.1: Sources of income - % of household with other sources of income ............................................................... 140 Figure 7.12.2: Government salary ........................................................................................................................................ 141 Figure 7.12.3: Private company (entity) salary..................................................................................................................... 142 Figure 7.12.4: Pension .......................................................................................................................................................... 142 Figure 7.12.5: Form of saving ............................................................................................................................................... 143 4 1. Introduction This report provides an overview of findings from the baseline survey on remittance1 beneficiaries financial behaviors, conducted in Eastern Europe and Central Asia. The survey was undertaken in Albania, Kosovo, Serbia, Bosnia and Herzegovina, Kyrgyzstan, and Tajikistan. The Remittances and Payments Program (RPP) in Eastern Europe and Central Asia, funded by the State Secretariat for Economic Affairs (SECO, Switzerland), focuses on improving the retail payments environment in selected countries, with a specific focus on creating an efficient and well-structured market environment for the transfer of international remittances. Against this backdrop, the baseline survey aims to provide evidence and data insights that can be leveraged to improve the remittance environment. An efficient and well-structured remittance environment enables migrants and their families to benefit from improved access to remittances services that are cheaper and safer to use. Creating efficiencies in the provision of remittances services will also have the added benefit of additional funds being made available that can be leveraged for savings and investment purposes. There is also an opportunity to leverage access and use of remittances services as an entry point to broader financial services for those that are either underserved or currently have no access to services outside of those they use to receive money from friends and family overseas. The Remittances and Payments Program (RPP) adheres to the World Bank – CPMI General Principles for International Remittance Services (General Principles). The General Principles cover a broad range of areas relating to the remittances markets, including consumer protection and transparency, legal and regulatory framework, payment system infrastructure, market structure and competition, remittance service providers’ governance, and risk management. The main objective of this baseline survey was to understand behavior of remittance recipients in selected countries and the level of their satisfaction with existing remittance products and services. The survey had the added objective of establishing a baseline for which to assess the impact of the provision of technical and the preparation and eventual implementation of the six-country roadmap to be created for the ECA countries surveyed. The rest of the report is structured as follows:  Chapter 2 details an executive summary which provides and overview of the full analysis;  Chapter 3 provides background information on a detailed methodology, the types of research employed and outlines the fieldwork undertaken;  Chapter 4 presents a basic economic analysis, country specific background information and details of migratory trends to frame the remittance survey analysis;  Chapter 5 explores survey findings as it relates to remittance characteristics, remittance channels and providers, and impact of remittances on household income. This section also discusses key insights with respect to remittance sending behavior of remittance beneficiaries in these countries;  Chapter 6 and 7 provide conclusions and related annexes to supplement the report. 1 Remittances are defined as cross-border, person-to-person payments of relatively low value, typically recurrent. These transactions are generally initiated by migrant workers, who need to send money back to their home countries to support their families. 5 6 2. Executive Summary There are many regional differences in remittance behaviors between the Central Asian and Eastern European countries surveyed, both in terms of the origin of remittances and characteristics of its senders. For instance, Eastern European remittance receivers typically receive their payments from one or two senders, while there are usually more than two senders for Central Asian receivers. The senders to Eastern European countries are generally older than 40 years who have migrated to either Europe or North America and send remittances from their regular monthly income. Albanian beneficiaries mainly receive remittances from senders who migrated between 2002 and 2013, households in Serbia, Bosnia and Herzegovina, and Kosovo receive them from those who migrated before 2000. These findings align with the cultural-historical and socio-economic context of these three countries during the 1990’s, when war, crisis, and displacement resulted in considerable economic migration. By contrast, remittance receivers from Tajikistan and Kyrgyzstan receive remittances usually from seasonal migrants from Russia who are aged 18-29 years. This finding is also in line with the historical and geographical context of Central Asia, in particular its current economic relations with Russia. The frequency and duration of remittances sent is influenced by the origin of remittances and characteristics of the sender. Beneficiaries in Central Asia are more likely to receive remittances regularly (once every three months) and they have been relying on these funds for only a few years. On the other hand, beneficiaries in Eastern Europe are more likely to receive remittances annually and have been receiving them for more than six years. The extent to which remittances contribute to households differ between countries in Central Asia and Eastern Europe. Remittances make considerable contributions to households in Central Asia, especially since they are received regularly. Remittances function as a supplementary contribution to households in Eastern European countries, given that they are usually sent on special occasions. Of the countries surveyed, Serbia and Bosnia and Herzegovina most regularly receive remittances of a consistent amount, while remittances sent to Albania and Kyrgyzstan largely fluctuate in amount and sending frequency. Authorized money transfer operators, banks, and post offices are the most common channels of receiving remittances. Personal delivery is still the main channel used in Bosnia and Herzegovina, while electronic systems are used equally as much or more prevalent in other countries surveyed. Although electronic remittance receipt systems are perceived to be reliable, safe, and quick, over half of respondents do not use these bank-based services. The main reported reasons that respondents do not use bank-based services for remittances are (i) complicated procedures; (ii) money transfer costs; and (iii) lack of a bank account. In addition, these respondents would consider using electronic money transfer services if procedures were less complicated, costs were lower, and the transfer of money was quicker. However, one third of this population express that they would never consider receiving remittances through banks or other financial institutions. Most respondents from the ECA countries who do not receive money through personal delivery are satisfied with their current methods of remittance receipt as well as with the locations from where they receive them. Pay-out locations are within an average walking distance of 15 minutes or less than 30 minutes away by car or bus. Respondents are also highly satisfied with the availability of service at these locations, as they are generally open during work hours and have sufficient funds available. 7 Respondents do not have to wait long to receive remittances from the moment they are sent. A large majority (84%) of respondents only wait up to one day from the moment the money is sent, while less than a day is needed for more than half of the respondents. As expected, remittance beneficiaries who rely on money transfer operators are more likely to wait less than a day for completion of the money transfer. There are virtually no remittance senders among members of the targeted population surveyed. Only 2% of total remittance receivers have sent money to someone abroad over the past 12 months. Kyrgyzstan and Serbia have the largest share of remittance receivers who have also sent money abroad. Money transfer operators are the main services used to send money abroad and the majority of remittance senders have not experienced any issues in the money sending process. When a problem was indeed experienced, high costs associated with sending remittances, particularly sending fees, were reported by 80% of respondents. 8 3. Background on Methodology 3.1 Survey Sample and Population Profile A baseline survey on the financial behaviors of remittances beneficiaries in East Europe and Central Asia was conducted in Albania, Kosovo, Serbia, Bosnia and Herzegovina, Kyrgyzstan, and Tajikistan. In all selected countries, the survey was conducted in-person and the CAPI method of data collection was applied. The total number of completed interviews is outlined in Table 3.1.1. Table 3.1.1. Sample size per country Total Respondents Albania 805 Kosovo 1354 Serbia 851 Bosnia and Herzegovina 833 Kyrgyzstan 819 Tajikistan 1053 Total 5715 Using a random probability sampling method, results are representative of the population of remittance beneficiaries in the countries where the surveys were completed. Households included had received remittances at least once in the last 12 months. Interviews were conducted with individuals that were usually charged with collecting remittances received from abroad. Table 3.1.2 provides a demographic breakdown of the sample. 9 Table 3.1.2. Sample demographics per country Bosnia and Albania Kosovo Serbia Kyrgyzstan Tajikistan Herzegovina Gender Male 38% 64% 41% 40% 26% 39% Female 62% 36% 59% 60% 74% 61% Age 18-29 34% 28% 19% 16% 18% 20% 30-44 20% 27% 31% 20% 24% 30% 45-60 25% 27% 30% 30% 43% 37% 60+ 20% 19% 19% 33% 14% 13% Education Primary 31% 30% 14% 31% 15% 21% Secondary 49% 54% 62% 57% 60% 60% High 20% 16% 25% 12% 24% 19% Working status Employed 31% 31% 43% 21% 21% 23% Self-employed 11% 7% 7% 3% 12% 10% Unemployed 58% 63% 49% 76% 67% 67% 3.2 Overview of the methodology 3.2.1 Outline of sampling procedures A random probability sampling was used with precise rules for selection of households and respondents. The first step in sample design was creation of the sample for total population aged 18 and above based on random representative approach. In Serbia, Albania, Bosnia and Herzegovina, and Kosovo (Eastern European countries), a three-stage stratified sample design was used. In Tajikistan and Kyrgyz Republic (Central Asian countries), a four-staged stratified sample design was used due to lack of a proper sampling frame. The samples for each country were stratified proportionately to size of geographical regions and degree of urbanization to increase the precision of survey estimates. Within the sample created as a representation for the total population of selected countries, households were visited using a random walk procedure within selected clusters to locate households that are remittance recipients. Remittance recipients were defined as persons or households who received remittances, that is, money from relatives or friends from abroad in 12 months preceding the survey. The interviewer within each selected cluster performed the random route procedure from one starting address (randomly selected), selected every nth address from the specified starting point and attempted to locate and contact a remittance recipient from that address. If a remittance recipient was successfully found, the interviewer conducted the in-person interview with the household member. If there was no remittance recipient in the address selected by random route, the interviewer recorded this information and following predefined steps, continued with the search for remittance recipients in other households. 10 This sampling procedure achieved the following:  Representative sample for population of households with at least one remittance recipient  Precise data about share of households with at least one remittance recipient in total population of households in selected countries  Due to representativeness of the sample created this way, obtaining reliable data about behaviour, attitudes and level of satisfaction of remittance recipients in selected countries 3.2.2 Outline of fieldwork procedures The questionnaire used for data collection was designed to obtain data about behaviors, needs, and levels of satisfaction with current remittance products by remittance recipients. Special attention is given to the payment systems aspect of remittance transactions, that is, to the services used to transfer the funds. The questionnaire included questions on the demographic profile of remittance senders, frequency, method, and amounts of remittance transfer, usage of received remittances from abroad, usage of bank account and products, and sending remittances. Before the main fieldwork, a pilot survey was conducted in all surveyed countries. Ten interviews per country with remittance recipients were conducted. The questionnaire was translated to local languages by translators from local country teams based on the final questionnaire in English. All other materials, such as the interviewers’ manuals, were translated to local languages based on the final materials in English. The fieldwork was conducted from July to September 2016. After the data collection process, fieldwork control was performed on a minimum of 25% of total sample per country. Fieldwork control was done by re- contacting the respondent to check that the interview was conducted correctly. Fieldwork control was conducted either by telephone or face-to-face by a separate quality control team.2 2 More detailed methodology is presented in Annexes 11 4. Overview of migration trends within six selected countries 4.1. Albania Albanian emigration has had three key phases. The first phase was an early outflow of emigrants prior to 1944, those who left 1945-1990, and a significant outflow following the 1990 breakdown of the communist regime. It is estimated that by the end of 2008, over 1 million Albanian citizens were living abroad. Three types of international migration in Albania can be identified. The first is a short-term international migration (mostly connected to Greece) and the following two types of international migrations to Greece, Italy, and other countries of the European Union, as well as to the US and Canada. Over 1.1 million people emigrated from Albania in 2015. This number represents 28% of all citizens of Albania. The top five countries Top 5 emigration countries are Italy, Greece, USA, Macedonia and Germany. 4.2. Bosnia and Herzegovina Several major periods of emigration from Bosnia and Herzegovina can be identified. The first phase took place in the 1960’s and 1970’s to various parts of the world. The second was during the years 1992 – 1995 to the European Union, North America, and Australia as a result of war conflicts. Finally, the last phase occurred post-1995 after the signing of The Dayton Peace Agreement. The total number of migrants from Bosnia and Herzegovina was over 1.6 million people in 2015. This number accounts for 30% of all citizens of Bosnia and Herzegovina. The top five emigration countries are Croatia, Serbia, Germany, Austria, and the USA. 4.3. Kosovo Four stages in the history of emigration from Kosovo are identified. The first was mainly of migrants from rural communities with no or very limited education in the late 1960s – early 1970s. This group mainly emigrated to Germany and Switzerland. The second phase took place between 1989 and 1997 and migrants were mostly better educated and skilled individuals. Emigrants that left between 1998-1999 were forced to leave due to the outbreak of war and left for Macedonia, Albania, Western Europe, or the US. Finally, those who emigrated post-1999 period were driven to seek better living standards in the European Union and/or the USA. 12 4.4. Serbia There are three main migration routes from Serbia in recent history. The first is to Czechoslovakia, Russia, and Ukraine between World War I until the fall of communism in 1990. The second emigration phase was caused by economic reasons to North America, Australia, and New Zealand. Finally, the third phase occurred from the breakup of Yugoslavia and economic crisis between 1991-1995. 4.5. Kyrgyzstan There have been three main stages of migration from Kyrgyzstan. The economic crisis and worsening inter- ethnic relations pushed the first phase between 1991 to 1994. Specific ethnic groups continued to leave the country between 1995 and 2005, and continued economic crisis, political instability, and the global financial crisis has resulted in the third stage of emigration from 2006 until the present. Total number of migrants from Kyrgyzstan was 760,847 people in 2015. This number accounts for 11% of all citizens of Kyrgyzstan. The top five emigration countries are Russia, Germany, Ukraine, Tajikistan, and Kazakhstan. 4.6. Tajikistan Since its independence, three defined waves of migration, primarily labor, can be identified. Highly educated migrations employed in the health and educator sectors, as well as metallurgical, engineering, and construction industries, migrated to Russia from the early to mid-1990s. At the end of the 1990s, a large number of the rural population migrated from the devastation resulting from war. Present-day emigration from Tajikistan to Russia is primarily among the younger population aged 18 to 29 years with very little knowledge of the Russian language. Total number of migrants from Tajikistan was 589,748 people in 2015. This share accounts for 6.5% of all citizens of Kyrgyzstan. The top five emigration countries are Russia, Germany, Ukraine, Kazakhstan, and Afghanistan. 13 5. Key Insights 5.1. Characteristics of remittances 5.1.1 Origin of Remittances A significant difference is observed in the number of remittance senders between countries in Eastern Europe and Central Asia. Survey results show that more households in Eastern European countries than those in Central Asia had received remittances from one sender only. For instance, 91% of beneficiary households in Serbia received remittances from a single sender. However, more than a quarter of households in Tajikistan and Kyrgyzstan received remittances from two or more senders, whereas no more than one out of five households in any single Eastern European country received remittances from two or more senders over the course of the last 12 months. Further details on number of remittance senders is provided in Annex 8.5. Meaningful differences exist in the sending countries across the ECA countries surveyed. Russia is the main sending country for beneficiary households in Tajikistan and Kyrgyzstan, representing 97% and 91%, respectively. Remittances from Western-European countries account for more than half of total remittances received in all studied countries, yet constitutes a larger proportion of over 80% of remittances sent to Eastern Europe. In the case of Kosovo and Serbia, remittances received from European countries account for a large majority, with a significant share sent from Germany. Similarly, 88% of respondent households in Albania received remittances predominantly from Italy and Greece. In Bosnia and Herzegovina, the money received from European countries accounts for 80% of total remittances, yet the share from USA and Canada are considerable when compared to that received by other countries. Specifically, nearly one fifth of total remittances sent to Bosnia and Herzegovina are from either of these two countries (Table 6.1.1.1a). Figure 5.1.1.1: Origin of remittances Place of residence of remittance sender – Country; Multiple responses; Base: Total target population 100 94 88 90 81 79 80 70 57 60 50 40 33 30 17 20 11 12 7 5 3 6 0 1 4 10 2 0 0 0 Europe Russia USA/Canada Other c ountries Total Serbia Albania Kosovo Bosnia and Herzegovina Tajikistan Kyrgyzstan 14 Table 5.1.1.1a: Origin of remittances Place of residence of remittance sender – Country; Multiple responses; Base: Total target population Recipient country Serbia Albania Kosovo Bosnia and Tajikistan Kyrgyzstan Sending countries Herzegovina Russia 2% 0% 0% 0% 97% 91% Germany 21% 6% 41% 25% 0% 0% Switzerland 8% 0% 23% 8% 0% 0% Italy 5% 35% 5% 3% 0% 0% Austria 20% 0% 6% 15% 0% 0% United States of America 8% 10% 4% 14% 0% 1% Greece 0% 32% 0% 0% 0% 0% Sweden 4% 1% 4% 6% 0% 0% France 6% 2% 4% 2% 0% 0% United Kingdom 2% 8% 3% 1% 0% 0% Slovenia 3% 0% 2% 5% 0% 0% Canada 3% 2% 1% 3% 0% 0% Norway 1% 0% 1% 3% 0% 0% Australia 3% 0% 0% 2% 0% 0% Belgium 1% 1% 1% 1% 0% 0% Kazakhstan 0% 0% 0% 0% 1% 2% Netherlands 1% 0% 1% 2% 0% 0% Croatia 1% 0% 0% 3% 0% 0% Denmark 0% 0% 0% 3% 0% 0% Turkey 0% 0% 0% 0% 0% 3% The characteristics of senders residing overseas is another variation discerned across countries. 61% of the total population of senders to respondent households are believed to have permanent resident status in their host countries. This group is also the main senders to Eastern European countries (Albania, Bosnia and Herzegovina, Serbia, and Kosovo) included in the survey. On the contrary, remittance senders to Central Asian countries are primarily seasonal workers abroad, which is the case for 86% of respondent households in Tajikistan and 77% in Kyrgyzstan. The survey shows that remittance senders to these two countries tend to have migrated after 2013, while most remittance senders to Eastern Europe left their country of origin before 2013. In line with the type of economic migration that occurred in Eastern Europe, more than half of the remittance senders originating from Serbia, Bosnia and Herzegovina, and Kosovo emigrated before the year 2000. In Albania, the majority of remittance senders emigrated between 2001 and 2013. 15 Figure 5.1.1.2: Characteristic of the remittance sender's stay abroad Month and year of departure of remittance sender; Base: Total target population Permanent departure Seasonal work Born abroad 2000 and before 2001 - 2013 After 2013 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Total 61 37 3 Total 35 34 31 Serbia 68 21 11 Serbia 47 37 16 Albania 80 20 Albania 37 44 18 Kosovo 89 83 Kosovo 57 36 8 Bosnia and Bosnia and 89 83 Herzegovina 66 27 7 Herzegovina Tajikistan 14 86 Tajikistan 2 29 69 Kyrgyzstan 22 77 Kyrgyzstan 2 31 67  A higher percentage of payments senders to the Tuzlanski canton in Bosnia and Herzegovina left the country after the year 2000, while half of the senders to the Republic of Srpska emigrated in the years leading up to 1992. Remittance senders from Central Asia are considerably younger than their Eastern European counterparts. A little less than half (43%) of the remittance senders from Central Asia belong to the 18-29 age group, a much higher percentage when compared to this age group’s share in Eastern European countries. The same percentage of remittance senders from Central Asia are aged between 30-44 years, resulting in a significantly lower number of remittance senders above 45 years of age. In contrast, more than half of the total population of remittance senders from both Serbia and Bosnia and Herzegovina belong to the 45+ age group, while 50% of remittance senders from Albania and Kosovo are aged between 30-44 years. These survey results correspond with the years during which remittance senders migrated from their countries of origin, as well as the type of economic migration that characterizes their stay in their host countries. 16 Figure 5.1.1.3: Age of remittance senders Age of remittance sender; Base: Total target population 18-29 30-44 45-60 >60 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total 24 44 27 5 Serbia 10 35 41 13 Albania 20 52 27 2 Kosovo 17 50 29 4 Bosnia and Herzegovina 9 37 44 10 Tajikistan 42 43 15 0 Kyrgyzstan 43 43 14 1 There are noticeable gender differences among remittance senders across the observed countries. Remittance senders from all six ECA countries studied are mainly males, who account for 75% of all remittance senders, with only two countries that have a comparable share of both female and male senders. For instance, males from Tajikistan and Kyrgyzstan constitute 93% and 70% of remittance senders, respectively. More males than females are also remittance senders in Kosovo and Albania, while there is a nearly equal gender representation of remittance senders from Serbia and Bosnia and Herzegovina. Figure 5.1.1.4: Gender structure of remittance senders per country Gender of remittance sender; Base: Total target population 100% 7 90% 18 26 29 31 80% 44 45 70% Female 60% 50% 93 40% 82 74 71 69 30% 56 55 Male 20% 10% 0% Total Serbia Albania Kosovo Bosnia and Tajikistan Kyrgyzstan Herzegovina 17 5.1.2 Duration and frequency of remittances More than half of the surveyed households have been receiving remittances for no longer than two years. For each country, the duration of remittances receipt is determined by when the remittance sender migrated. For instance, more than half of the households in Tajikistan and Kyrgyzstan have been receiving remittances for the last two years, which fully coincides with the period during which the majority of remittance senders from these countries emigrated. Likewise, a higher percentage of surveyed households in Eastern European countries have been receiving remittances for six or more years, since most of the economic migration from this region occurred before 2001. Figure 5.1.2.1: Period of remittances receipt How long have you been receiving remittances from abroad? Base: Total target population 100% 7 8 90% 10 27 25 11 More than 10 32 80% 42 40 years 70% 23 25 17 16 From 6-10 years 60% 22 50% 21 21 25 30 From 2-5 years 40% 30% 28 60 23 22 56 20% Less than 2 years 32 29 10% 19 16 14 0% Total Serbia Albania Kosovo Bosnia and Tajikistan Kyrgyzstan Herzegovina Approximately 32% of all respondent households that receive remittances report changes in frequency and value of money received. Of the countries observed, the fewest number of households in Serbia (14%) and Bosnia and Herzegovina (12%) report changes in the last 12 months in the frequency and amount of money received. These fluctuations occurred more for households in Albania (50%) and Tajikistan (43%). Most of the changes in remittances are a decreased payment amount and frequency in sending. More households in Albania (75%) and Kyrgyzstan (87%) report a decreased remittance amount over the last 12 months than do other surveyed countries. Across all ECA countries, 63% of households received a smaller remittance and 27% experienced a reduction in frequency of remittances (Annex 8.6). Changes in the frequency and amount of remittances occur for different reasons depending on the country. For instance, 87% of Albanian households reported that changes in the sender’s income is the main reason that patterns of receiving remittances changed, while regulatory changes concerning remittances in the sending or receiving country were a key factor for households in Central Asian countries. More respondents attributed changes in remittances as a result of changed circumstances of the receiving households in both Kosovo (36%) and Bosnia and Herzegovina (32%). 18 Figure 5.1.2.2: Changes in frequency and value of received money - reasons What was the main cause for these changes? Base: Those who stated that amount or frequency of received remittances from abroad changed in certain period of time (32% of target population) 100% 2 1 2 Change in 10 11 12 90% 22 18 government policy 80% 26 regarding 20 36 70% 9 15 sending/receiving 32 60% of remittances Change in incomes 50% / needs and 87 circumstances of 40% 66 64 59 64 your household 30% 62 47 20% Change in incomes 10% / possibilities of the 0% remittance sender Total Serbia Albania Kosovo Bosnia and Tajikistan Kyrgyzstan abroad Herzegovina There is a clear contrast in the frequency of remittance-sending between countries in Central Asia and Eastern Europe. Results suggest that the type of economic migration undertaken influences how frequently remittances are sent. For example, survey results illustrate that respondent households in Central Asia receive remittances at least quarterly, whereas remittances are received less frequently – no more than three times a year – in Eastern European households. Figure 5.1.2.3: Frequency of receiving remittances How often do you receive remittances from this person? Base: Total target population 100% 7 6 90% 20 23 29 26 17 Once a year 80% 33 21 70% 32 2-3 times a year 60% 34 37 41 32 50% 35 35 40% 4-6 times a year 23 30% 18 20 16 20% 17 41 40 Monthly (at least 10% 25 19 once a month) 17 17 14 0% Total Serbia Albania Kosovo Bosnia and Tajikistan Kyrgyzstan Herzegovina A higher percentage of households in Central Asia receive remittances regularly, while more households in Eastern Europe receive remittances for special needs and occasions. On the whole, almost half of all households surveyed receive payments on special occasions and for special needs, 40% receive remittances occasionally, and 36% in regular time intervals. It should be noted that as the questionnaire allowed for multiple responses, regular or occasional receipt of money is not exclusive of money received on special occasions and for special needs. It is not surprising that a larger portion of households in Kyrgyzstan and Tajikistan receive remittances regularly, whereas more households in Eastern Europe receive remittances occasionally for special needs and events. These results suggest that remittances not only represent a more important part of the household budget in these Central Asian countries, but also the primary source of their 19 economic activity. However, remittances seem to function as a supplement to receivers’ general economic status in the Eastern European countries surveyed, as payments constitute a lower percentage of their household income. Figure 5.1.2.4: Regularity of receiving remittances Do you receive remittances on regular basis or on special occasions/needs? Multiple answers; Base: Total target population Total Serbia Albania Kosovo Bosnia and Herzegovina Tajikistan Kyrgyzstan 60 48 50 50 45 50 40 38 40 36 34 31 35 36 35 38 36 27 30 28 29 27 28 30 26 23 18 16 20 11 12 13 10 10 0 Regularly (in regular time Occasionally (from time to On special occasions (for For special needs (school intervals, same number of time) holidays or some personal fees, Illness/doctor bills, remittances and celebrations such as death in family, marriage) same/similar amount each birthdays, family time) celebrations) 20 5.2. Remittance channels and providers 5.2.1 Overview of remittance channels and providers Distribution of remittances used during the past 12 months were through both regulated and informal channels in the countries surveyed. Regulated channels – such as money transfer operators, banks, and post offices – were used for sending remittances by 88% of households, while half of the households also used an informal channel of personal delivery through friends, relatives, bus drivers, and/or other transport operators. It should be noted that respondents could report multiple channels of remittance receipt. Figure 5.2.1.1: All channels of money receipt used in the last 12 months Please specify all ways of receiving remittances in the last 12 months; Multiple answers; Base: Total target population 0 10 20 30 40 50 60 70 Through a money transfer operator Total Hand carried by the person who sends (or brings) Serbia remittances Through bank (without sending to the bank Albania account) Kosovo Into a bank account Bosnia and Herzegovina Hand carried by a relative or other individual Tajikistan Through Post office Kyrgyzstan Bus driver (or other transport operator) Regulated methods are most frequently considered the preferred option to transfer remittances across the countries studied. In Kyrgyzstan and Tajikistan, 61% of respondent households received remittances in cash at a bank branch. While 40% of households in Serbia and 45% of households in Kosovo most frequently use money transfer operators, more than half of the households did the same in Albania (57%). Contrary to these five countries, personal delivery is significantly more represented in Bosnia and Herzegovina with 44% of respondent households most frequently using this channel, while only 28% of households surveyed use money transfer operators. 21 Figure 5.2.1.2: The most frequently used money receipt channel Could you please indicate the one you use the most frequently? Base: Total target population 0 10 20 30 40 50 60 70 Through a money transfer operator Total Hand carried by the person who sends (or Serbia brings) remittances Through bank (without sending to the bank Albania account) Kosovo Into a bank account Bosnia and Herzegovina Hand carried by a relative or other individual Tajikistan Bus driver (or other transport operator) Kyrgyzstan Through Post office  In Albania, those aged 18 to 29 are considerably more likely to use money transfer operators, and applies to those who have been receiving remittances for the last two to five years. The same applies if the money is sent from the UK. However, personal delivery is more frequently used among citizens above 60 years old and those who have been receiving money for more than 10 years. This channel is also more widespread with money from Greece.  In Bosnia and Herzegovina, money is usually delivered by the sender or someone else if sent from Austria, yet funds are transferred through a money transfer operator if sent from the United States of America.  In Kosovo, personal delivery is more likely to be used by households whose remittances make up to 9% of their annual household income, while households whose remittances make up more than 20% of annual household income are considerably more likely to receive the money via money transfer operator. Among the regulated channels used to send remittances, money transfer operators are the main service providers. Nearly half of the respondent households in all six ECA countries reported using a money transfer operator, followed by bank services (without using a bank account) used by 23% of respondents. Only 14% of respondent households received remittances directly into a bank account. Regulated channels are used by the majority of respondent households in Central Asia and by a significant share in Serbia and Albania, whereas informal personal delivery is used more in Bosnia and Herzegovina. 22 Respondents from all six ECA countries report that the fastest channel for remittance transfer is money transfer operators. Overall, money transfer services take less than a day in making funds available to the receiver in more than 50% of cases. Survey results show that the speed of service is defined by the type of service or service provider being used to complete the transaction. Money transfer operators allow the remittances to be available within 24 hours from the moment of sending. Figure 5.2.1.3: Time needed for receipt of remittances starting from the moment of sending Starting from the moment of sending, how long it usually takes you to receive the cash remittance? Base: Total target population Less than one day One day 2-3 days 4-7 days More than 7 days 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total 55 28 14 1 Serbia 51 29 17 1 Albania 54 24 18 1 Kosovo 49 24 23 1 Bosnia and Herzegovina 58 23 15 1 Tajikistan 64 30 6 Kyrgyzstan 53 43 4 5.2.2 Remittance Providers and Channels Satisfaction Most respondents are satisfied with the transfer system they use most, irrespective of the channel used. 97% of all households that have received remittances in the past 12 months are satisfied with their most commonly used money transfer method. Those who are not satisfied (3%) single out high money transfer fees as the main reason for their dissatisfaction. The fee typically amounts to 7.5% of the total remittance sum. However, regardless of remittance provider used, 91% of remittance receivers do not pay a fee when withdrawing remittances. In all countries studied, remittances are mainly withdrawn in cash (96%) upon receipt. Additional information on fees and the different currencies in which remittances are received can be found in Annex 8.7. Reliability, safety, efficiency, and transfer speed are cited as the top reasons for choosing a preferred method of transfer by respondents. Each method of remittance transfer is characterized by different motives for usage. For instance, personal delivery by the sender or someone else is preferred since it is considered to be reliable and the least costly. On the other hand, money transfer via bank, bank account, and services of money transfer operators are described as reliable and safe, as well as fast and efficient. 23 Figure 5.2.2.1: Level of satisfaction with the most commonly selected method of money transfer Overall, to what extent are you satisfied with the method of remittance transfer that you use the most frequently? Base: Total target population Completely satisfied Mostly satisfied Mostly unsatisfied Completely unsatisfied 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total 66 31 12 Serbia 71 26 21 Albania 66 31 22 Kosovo 58 36 23 Bosnia and Herzegovina 68 29 12 Tajikistan 73 26 1 Kyrgyzstan 63 36 1 A significant majority (97%) of remittance beneficiaries report that they have never experienced any problems with money receipt. For those who had experienced difficulties with receipt of money, 75% of recipients were able to resolve the issue in an average of three days. While more than half of the recipients who had problems with receiving remittances were informed of the procedures for resolving these problems, one third of them state not knowing these procedures and a little more than 10% report that the remittance service provider did not define such procedures. Problems with remittance receipt had yet to be resolved for roughly 20% of recipients who reported experiencing these issues. A large majority (87%) of remittance recipients who have faced problems with money receipt report that they are still satisfied. More than half of this group have not changed remittance service providers, whereas approximately 20% of recipients who have experienced problems were prompted to change to a different remittance provider. There is high satisfaction with bank services among households that have not used them for remittance purposes in the past 12 months, but have previously used these services in the past. Overall satisfaction with bank services is very high among all the ECA countries studied, with satisfaction particularly high in Tajikistan, Kyrgyzstan, and Albania (Figure 5.3.1.7). In addition, when respondents were asked to assess the negative aspects of money transfer through banks, more than 75% of households who had previously used bank services for remittance transfers reported no negative experience. However, when negative experience was reported, 17% cited high money transfer costs as the leading reason for their dissatisfaction (Annex 8.7). 24 Figure 5.2.2.2: Level of satisfaction with bank services used for money transfer How satisfied were you with using a bank for remittances transfer? Base: Those who used banks to receive remittances in the past (20% of target population) Completely satisfied Mostly satisfied Mostly unsatisfied Completely unsatisfied 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total 44 47 6 3 Serbia 39 44 10 7 Albania 36 60 13 Kosovo 43 43 9 5 Bosnia and Herzegovina 42 47 8 3 Tajikistan 55 44 11 Kyrgyzstan 50 48 1 Among households that have not used bank services for money transfer in the past 12 months, fewer households in Eastern Europe tend to have ever used these services as remittance providers than those in Central Asia. Among the countries surveyed, Tajikistan had the highest proportion of households (65%) that had ever used services of banks or other financial institutions, followed by 43% of households in Kyrgyzstan (Annex 8.7). Within the Eastern European countries surveyed, the number of households that had ever used bank services for remittances were lower, with 24% of households on average having ever used a bank service previously. High costs for money transfer was the main reason for not having previously used a bank-based remittance service. Among the 51% of households that have not previously used bank-based remittance services, this reason was cited by 29% of respondents, followed by complicated bank procedures and lack of a bank account in respondents’ reluctance to use bank-based money transfer services. 25 Figure 5.2.2.3: Reasons for not using banks or other financial institutions in the money transfer process Why didn`t you use banks for remittances transfer? Multiple answers; Base: Those who never used banks for remittances transfer (51% of target population) Total Serbia Albania Kosovo Bosnia and Herzegovina Tajikistan Kyrgyzstan 50 45 40 35 30 25 20 15 10 5 0 Bank Don’t have a High cost of Didn’t know No bank Do not trust To slow / long Other reason processes are bank account the that bank available near banks duration of too remittance accounts can home or work the money complicated transfer be used for transfer and confusing remittances for me transfer Households that have never used bank services for money transfers would most likely consider using banks if costs were lower. 36% of respondents would consider using bank services if money transfer costs were lower, followed by simpler procedures of receiving and sending remittances (22%), and quicker money transfers (17%). However, one third of households reported that use of bank services as remittance providers would not be considered. Survey results indicate that the percentage of households that would never consider banks as remittance providers is higher in Serbia, Albania, and Bosnia and Herzegovina in comparison to the remainder of the surveyed countries. Factors that could influence bank service usage for remittances vary by country. For instance, households in Kosovo that have never used bank services for remittances are more likely to highlight the significance of more transparent and lower money transfer costs as influencing factors for bank service usage. The security and safety of transfer methods are important factors for households in Tajikistan, while respondents from Kyrgyzstan are more likely to focus on the need for simpler procedures for receiving and sending remittances. However, this survey suggests that households that have no desire to use banks as remittance providers usually do not take other financial institutions into consideration. 72% of respondent households report that they will not consider any other financial institution as an alternative to banks. Financial institutions whose services these households may use are post offices (19%) and exchange offices (7%). Additional data is provided in Annex 8.7. Respondents’ usage of additional bank products not related to remittances are also outlined in Annex 26 5.2.3 Usage of and access to remittances withdrawal locations The most frequently visited locations for receiving remittances in all ECA countries are money transfer operators (32%). This location is followed by home delivery by the remittance sender or another person at 29%, and a nearly equal percentage visiting bank branches. Money transfer operators are more frequently visited relative to other locations by households in Albania, whereas home delivery services are relatively more visited in Serbia and Bosnia and Herzegovina. Both locations are visited in equal frequency in Kosovo. Remittance receivers in Tajikistan and Kyrgyzstan usually visit bank branches or money transfer operator offices in accordance with their primary regulated money transfer method used. Figure 5.2.3.1: Locations where remittances are most frequently withdrawn What is the location where you most frequently withdraw your remittance? Base: Total target population 0 10 20 30 40 50 60 70 80 32 18 55 Money Transfer Operator location 46 19 17 35 29 34 Home delivery via the person who sends (or 39 44 brings) remittance 52 2 1 28 15 3 Bank branch 7 15 76 55 5 12 Bank remittance outlet location 0 8 4 8 Total Serbia Albania Kosovo Bosnia and Herzegovina Tajikistan Kyrgyzstan The most common means to reach a location where remittances are withdrawn is by foot. 43% of respondents walk to their remittance pay-out location, while cars are used by 37% and a bus used by 18%. Travel time to the nearest location for those who walk is usually 12 minutes, whereas it takes an average of 26 minutes when traveling by car or bus. 27 Figure 5.2.3.2: Means of transportation and average time needed to reach location to withdraw remittances How far from your residential address is the location that you visit to withdraw your remittance? Base: Total target population Used means of transportation Average time in minutes 0 10 20 30 40 50 60 Total 27 18 13 25 14 25 Bus/Mini Serbia 27 11 bus 26 9 12 24 44 Albania 29 38 25 30 18 26 Kosovo 17 Car 53 19 45 17 36 Bosnia and 34 34 Herzegovi 34 na 44 12 56 Tajikistan 12 60 10 By foot 35 12 45 Kyrgyzstan 11 52 14 22 12 When reached, remittance pay-out locations are almost always available. 92% of households that visit a pay-out location to receive remittances state that they are always open during working hours. Locations have been closed on at least 1-3 occasions for merely 7% of respondents, and even a smaller percentage of respondents (1%) report that pay-out locations have been closed on more than three occasions during working hours. In addition, respondents rarely have to visit pay-out locations more than once for withdrawal of the entire sum, since these locations typically carry the full amount of money needed. Additional data regarding availability of pay-out locations is provided in Annex 8.8. About half of remittance receivers who visit a pay-out location wait in line for 15 minutes, on average, to complete their transaction. Waiting in line is more common in Serbia, where almost 75% of households wait in line for 12 minutes on average. In the Eastern European countries, the average waiting time is 12 minutes, with the exception of Albania, where waiting time is 8 minutes. Kyrgyzstan and Tajikistan have the longest waiting times among the countries surveyed, with an average waiting time of 18 minutes. For further information on general accessibility and usage of ATMs and bill payment kiosks unrelated to remittances for respondents in ECA countries, please refer to Annex 8.10. 28 5.3. Impact of remittances on household income Remittances account for approximately 30% of total household income. Additionally, remittances are the only source of income for 14% of households that receive money from abroad in ECA region countries. In Eastern European countries, the remittances share of total household income range from 21% to 30%. This share is slightly higher in Kyrgyzstan, whereas it is particularly high in Tajikistan at 45%. Other sources of income for remittance receivers in the surveyed countries are outlined in detail in Annex 8.11. Figure 5.3.1: Share of remittances in total household income What is the share of remittance in total yearly household income? Base: Total target population 50% 45% 40% 35% 30% 25% 45 20% 15% 30 31 33 10% 23 23 21 5% 0% Total Serbia Albania Kosovo Bosnia and Tajikistan Kyrgyzstan Herzegovina  Observed regionally, within Livanjski canton and north of the Republic of Srpska in Bosnia and Herzegovina there is a higher percentage of the households where the remittances of one sender constitute more than 20% of total household income (35% in Livanjski canton and 30% in the north of the Republic of Srpska).  In Kosovo there is a significant difference in the share of remittances in total household income among various regions. The biggest share of remittances in household income is recorded in the households in the southwest region of the country, where the survey registers 41% of the households where the share of remittances from one sender is more than 20% of total annual household income. In contrast to that, in the southeast the survey registers almost half of households surveyed where remittances constitute less than 9% of annual household income. Remittances primarily contribute to meeting households’ basic needs. They also contribute toward purchasing consumer goods, household products, appliances, and groceries, followed by settling of medical expenses and covering education costs of household members. Only 40% of households could fully cover their basic needs if they were to stop receiving remittances, while one third of households could partially cover their basic needs. Money sent from abroad is the main source of income for 28% of households surveyed. A lower percentage of households in Eastern Europe are dependent on remittances as their main source of income than in Central Asian households (42%). 29 Figure 5.3.2: Influence of remittances in covering basic family needs Would you be able to cover your basic family needs if the received remittances by members of the HH didn’t come for a certain period of time? Base: Total target population Yes, the remittance I am receiving is not that important source of funds Yes, but I wouldn`t be able to cover all the basic needs No, the remittance is the main source of household income 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total 40 32 28 Serbia 55 31 15 Albania 38 31 30 Kosovo 36 37 27 Bosnia and Herzegovina 44 35 21 Tajikistan 31 28 42 Kyrgyzstan 40 29 30 There is a link between the frequency of receiving remittances and the structure of costs which are covered from this source. For example, in Serbia, Bosnia and Herzegovina, and Albania, where percentage of remittances received regularly is somewhat lower, this money is primarily used to cover the cost of utilities, vacations, and saving. In Kosovo, where a higher percentage of occasional remittances is recorded, remittances are used to cover emergency costs and transport equipment purchase. In contrast to Eastern European countries, remittances in Tajikistan are used for covering the cost of basic household needs such as consumer goods, medical bills, and education costs of the household members. In Kyrgyzstan, money received from abroad is mostly used for the purchase of consumer goods. Interestingly, survey respondents in Kyrgyzstan also use this money for various investments in real estate to a much higher degree when compared to other countries. Table 5.3.3: Usage of remittances – top three purposes What purpose do you use the received remittances from abroad for? Base: Total target population Bosnia and Total Albania Kosovo Serbia Kyrgyzstan Tajikistan Herzegovina FMCG, HH product, appliances, and goods 78,7 67 81 74 77 85 84 Health 53,2 52 58 33 54 43 72 Education 37,2 32 50 18 27 32 51 Emergencies (e.g. illness, accident, disaster) 18,3 31 25 17 19 9 8 Investments: Buying a flat or a house, construction, renovation and major repairs at home or apartment 15,3 9 14 14 11 28 17 30 Rent/ housing costs/ debt payment 14,4 9 9 24 23 10 15 Transport equipment 13,2 8 17 5 14 11 20 Holidays, vacations, traveling 10,5 21 9 20 12 2 2 Savings 10,4 18 8 11 14 9 6 Investing in business activities: Agricultural production, Entrepreneurial activity 8,7 5 8 10 10 16 5 Habits of saving money for major purchases, emergencies, and special occasions are not very developed in the interviewed receiving households. Fewer than one third of households claim to have some money set aside for these purposes. The practice of saving for special occasions is somewhat more widespread among Albanian households, where 41% of them claim to set aside some money for saving purposes. Despite the fact that saving is not a widespread practice among remittance-receiving households, those who do save set aside money occasionally, when their incomes allow them (Figure 5.3.5). Households in Tajikistan, for instance, emphasize the importance of remittance for saving practices, and state that they are able to always save some money when they receive remittances from abroad. Figure 5.3.4: Savings Does your household save any money / funds for major purchases, emergencies, school fees, special occasions (weddings, funerals, etc.)? Base: Total target population 100% 5 11 14 12 11 11 13 90% 80% Refuse to answer 70% 61 45 60% 59 58 62 62 63 50% No 40% 30% 20% 41 30 34 30 27 27 24 Yes 10% 0% Total Serbia Albania Kosovo Bosnia and Tajikistan Kyrgyzstan Herzegovina 31 Figure 5.3.5: Frequency of saving How often is your household able to save some money? Base: Those who save money (30% of target population) Every week Every month Occasionally – when we can Whenever we receive remittances 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total 1 11 75 13 Serbia 1 6 84 8 Albania 1 9 74 16 Kosovo 2 16 73 9 Bosnia and Herzegovina 11 86 2 Tajikistan 1 12 59 28 Kyrgyzstan 1 10 76 13 Remittances positively influence the ability to save for a large number of surveyed households. 41% of surveyed households that save money claim they would not be able to put aside savings if they did not receive remittances, with a higher share of households in Central Asia belonging to this group. Survey results also show that the money amount saved will be lower without remittances for 40% of all households. However, 19% of remittance recipients report that they will still be able to save the same amount without remittances. Figure 5.3.6: Influence of remittances on saving Would you be able to save some money in case you did not receive remittances? Base: Those who save money (30% of target population) Yes, the same amount Yes, but the amount would be lower No 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total 19 40 41 Serbia 30 32 38 Albania 19 45 36 Kosovo 14 50 36 Bosnia and Herzegovina 24 37 38 Tajikistan 13 35 52 Kyrgyzstan 19 29 53 32 5.4. Sending remittances abroad Only 2% of the population of remittance receivers in the surveyed ECA countries have sent money abroad over the past 12 months. As the number of remittance receivers who also send money abroad comprises a minimal share of respondents, the country-specific findings outlined in this section serve only as examples and cannot be used to form definitive conclusions concerning money-sending behaviors of remittance receivers. Kyrgyzstan and Serbia have the largest share of remittance receivers of 4% who have also sent money abroad, with an even smaller share of remittance receivers in the remaining ECA countries having done the same. Remittance receivers who send money abroad do so very rarely, with 43% sending once a year and 27% sending two to three times a year. The amount of money sent abroad has not changed during the course of this period for 75% of senders. Money transfer operators and banks are the main services used to send money abroad. However, remittance receivers in Central Asia are somewhat more likely to use banks than those in Eastern Europe. In line with the predominant sending method, locations most visited for money transfer are bank branch offices (45%), followed by branch offices of money transfer operators and post offices. Half of the senders obtained information orally on the money-sending method, while one fourth was informed through the internet. Speed (44%) and reliability (20%) are cited as the main advantages of using money transfer operators and banks for sending money abroad. Half of the those who send remittances report that their most commonly used method of sending money has no flaws and the majority had faced no problems in the money-sending process. For those who did experience problems, the duration it took to send the money was cited as an issue, with the money transfer having taken longer than anticipated. For 60% of remittance senders, money was available for the receiver in less than a day, while it took one day for nearly one out of four senders. Another issue reported is high costs associated with sending remittances, particularly sending fees (80%) and foreign exchange margins for a much smaller share of respondents. 33 6. Conclusions This survey on remittance beneficiaries in six countries of Eastern Europe and Central Asia provides a baseline assessment of their respective remittance environments. The following key findings can be highlighted.  Money transfer operators are the main remittance service providers among regulated channels used in the six countries surveyed. 47% of respondent households across all six countries surveyed reported using a money transfer operator to receive remittances. However, an equally high share of senders relies on cash carried across border by themselves, a friend or relative, or a bus driver. Transfers to a bank or other type of account are limited to less than 15%.  Most respondents are satisfied with their preferred transfer service, regardless of the channel used. 97% of all households that have received remittances in the past 12 months are satisfied with their most commonly used money transfer method. Moreover, the same proportion of remittance beneficiaries have never experienced any issues with receiving their funds. For those who did experience difficulties, 75% of recipients were able to resolve the issue within approximately three days.  Remittances account for 30% of total household income across all six countries. Remittances primarily contribute to meeting households’ basic needs. Not only do remittances contribute toward purchasing consumer goods, household products, appliances, and groceries, but also settling medical expenses and covering education costs. Only 40% of households could fully cover their basic needs if they were to stop receiving remittances. Remittances are the main source of income for 28% of households surveyed.  Money-saving habits are not very developed in remittance-receiving households. Despite the fact that saving is not a widespread practice among remittance beneficiaries, those who do save set aside money occasionally whenever possible.  Regardless, remittances positively influence the ability to save for a large number of surveyed households. 41% of surveyed households that save money claim they would not be able to put aside savings if they did not receive remittances, with a higher share of households in Central Asia belonging to this group. Survey results also show that the money amount saved will be lower without remittances for 40% of all households. 34 7. Annexes 7.1. Background on Methodology 7.1.2 Survey instrument preparation The structure of survey instrument is presented in the following table: Section Topics covered Introductory questions  Demographic profile of remittance senders  Place of residence of remittance sender  Frequency of receiving remittances from each remittance sender  Share of remittance received from each remittance sender in total yearly household income Remittance transfer –frequency,  Duration and regularity of receiving remittances method and amounts  Ways of receiving remittances in the last 12 months  Main reasons for selecting the most frequent way of remittances transfer  Satisfaction with the most frequent way of remittance transfer  Currency in which remittances are received  Amount received from abroad in the last 12 months – total and average  Changes of amount or frequency of received remittances from abroad certain period of time Remittance transfer method  The most frequent location where remittances are withdrawn used most frequently  Time needed to reach location and means of transport used  Waiting in line within location  Needed time to receive remittance (starting from the moment of sending)  Notification about received remittance  Payment of commissions and fees  Currency of remittance  Issues with receiving remittances from abroad Usage of received remittances  Contribution of remittances to overall HH income from abroad  Other sources of income within household  Savings Usage of bank account and  Access to bank account products  Usage of bank account  Usage of payment card  Using banks for remittances transfer and experience  Possessing of other banking products  Presence of ATM in the area and usage  Presence of billing kiosks in the area and usage Sending remittances  Sending remittances abroad in the last 12 months  Method of sending remittance in the last 12 months  Advantages and disadvantages of the most common method of sending remittances  Amounts sent abroad  Costs for sending  Problems with method of money transfer  Payment of commissions and fees  Changes of amount or frequency of sent remittances from abroad certain period of time 35 7.1.3 Survey instrument translation The questionnaire was translated to local languages by translators from local country teams based on the final questionnaire in English. All other materials, such as the interviewers’ manuals, were translated to local languages based on the final materials in English. In the countries with more than one official language, the source questionnaire was translated into most of the languages. The list of languages used in each country is provided in the table below: COUNTRY Languages Albania Albanian Kosovo Albanian, Serbian Serbia Serbian Bosnia and Herzegovina Bosnian Kyrgyz Republic Russian/Kyrgyz Tajikistan Russian/Tajik 7.1.4 Pre-testing of survey instrument A pre-test of the survey instrument was conducted in all countries on the sample of 10 remittance recipients. This pre-test helped to ensure that the questionnaire is able to collect valid, reliable, and comparable information across the different countries of interest. Furthermore, a pre-test provided a final check on the translations. In the countries where more than one language of the questionnaire was planned, pre-testing included testing of all language versions. Within the pre-test, the respondents were selected from different groups:  persons who received remittance from one person from abroad in the last 12 months  persons who received remittance from two or more persons from abroad in the last 12 months  persons who received remittances from abroad through a bank, Western Union, or other “electronic” transfer (mobile money, mobile phone account, payment card, etc.)  persons who received remittances from abroad through personal delivery either by the remittance sender or other person 7.1.5 Method of data collection For the data collection process, the SM-S program was used for Albania, Kosovo, and Serbia, whereas a local script was used for Kyrgyzstan and Tajikistan. The CAPI software used in each country allowed various logic and consistency checks to be built into the script. 36 7.1.6 Sampling 7.1.6.1 Introduction A random probability sampling was used with precise rules for selection of households and respondents. The first step in sample design was creation of sample for total population aged 18 and more years based on random representative approach. Within the sample created as a representation for the total population of selected countries, households were visited using a random walk procedure within selected clusters in order to locate households that are remittance recipients. The interviewer within each selected cluster performed the random route procedure from one starting address (randomly selected), selects every nth address from the specified starting point and attempt to locate and contact a remittance recipient from that address. If a remittance recipient was successfully found, the interviewer conducted the in-person interview with the household member. In case that in address selected by random route there is no remittance recipient, interviewer records this information and following defined `step` continues with search for remittance recipient on other address. The following were achieved with these steps:  Identify a representative sample for population of households with at least one remittance recipient;  Obtain precise data about share of households with at least one remittance recipient in total population of households in selected countries; and as a result,  Obtain reliable data about behaviors, attitudes, and levels of satisfaction of remittance recipients in selected countries. 7.1.6.2 Sampling coverage Coverage describes the proportion of the survey’s target population that is actually included in the survey (the survey population). Since the sample design used general population data, sample coverage for population of remittance beneficiaries corresponds to the sample coverage for total population. The table below provides the coverage and reasons for exclusion (if any) for all of the survey countries. Conducted surveys covered the entire territory of the project countries, with the exception of areas which are deemed unsafe for fieldwork and which are usually not included in survey research projects, such as areas of recent military conflicts, insecure regions, or areas that are prohibitively remote. The coverage is calculated based on official population data which gives the proportion of the adult population living in the excluded areas. 37 COUNTRY DATA SOURCE FOR % OF POPULATION EXCLUSIONS FROM COVERAGE SAMPLE DESIGN (F2F) COVERED (IF APPLICABLE) Albania Census 2011. data 0,5% Inhabitants of poorly accessible, remote parts of the country Kosovo Census 2011. data 0,5% Inhabitants of poorly accessible, remote parts of the country Serbia Census 2011. data 0.5% Inhabitants of poorly accessible, remote parts of the country Kyrgyz Statistical Committee 0% Republic Tajikistan Statistical Committee 0% 7.1.6.3 Description of sampling procedure To achieve representativeness of survey results, random probability sample design was used. In Serbia, Albania, Bosnia and Herzegovina, and Kosovo (Eastern European countries) three-stage stratified sample design was used. In Tajikistan and Kyrgyzstan (Central Asian countries), four-staged stratified sample design was used due to lack of proper sampling frame. The sample selection in three-stage design included the following stages:  Stage 1: Stratification and selection of Primary Sampling Units (PSUs) - clusters  Stage 2: Selection of households  Stage 3: Selection of respondents in the households (person who most frequently picks up the money) The sample selection in four-stage design included the following stages:  Stage 1: Stratification and selection of Primary Sampling Units (PSUs) - settlements  Stage 2: Selection of Secondary Sampling Units (SSUs) - clusters  Stage 3: Selection of households  Stage 4: Selection of respondents in the households 7.1.6.4 Estimation of percentage of remittance recipients and total sample size In the process of sample design, the first step was estimate the percentage of remittance recipients within total population of survey countries. Estimation was done based on data that were available at the moment of project preparation. On the basis of percentage of remittance recipients and planned number of interviews with remittance recipients (effective sample size), total sample size was determined for each country. Total sample size was defined as total number of successful contacts in which it was determined that there were no remittance recipients or interview is completed3 (outcomes 51 and 62 in contact sheet). 3 From this calculation, outcome where eligibility is not known or where eligibility was determined but interview was not completed (due to refusal, unavailability of respondent) were excluded since it was assumed that these outcomes are equally present in both remittance and non-remittance population 38 COUNTRY Effective sample size Estimation of % Total sample size remittance recipients in total population Albania 800 25% 3200 Kosovo 800 20% 4000 Serbia 800 10% 8000 Bosnia and 800 12.5% 6400 Herzegovina Kyrgyz 800 10% 8000 Republic Tajikistan 800 9% 9000 Due to the lack of information about geographical dispersion of remittance beneficiaries and objective to have wide geographical coverage within each country, it was determined that in each cluster 20 successful contacts (outcomes 51 and 62) should be achieved. Within each cluster, interviewers visited households selected using random route technique until they reached 20 households in total with codes 51 (“There is no remittance receiver in household/No eligible respondents”) and 62 (“Completed interview”). 7.1.6.5 Stratification The samples for each country were stratified proportionately to size of geographical regions and degree of urbanization to increase the precision of survey estimates, since the dependency between measured variable(s) and those strata was presumed. Stratification of the clusters was made using following variables:  Geographical regions: To ensure that the sample has proportional representation of the geographical distribution of the country’s population.  Rural/urban region or other indicator of population density: In the second stage, clusters were ordered by their rurality/urbanity indicator within each geographical region. COUNTRY REGION NUTS2 OR DEGREE OF URBANISATION EQUIVALENT Albania 3 regions 2 categories: Urban and rural Kosovo 5 regions 2 categories: Urban and rural Serbia 4 regions 2 categories: Urban and rural Bosnia and 3 regions 2 categories: Urban and rural Herzegovina (13 cantons) Kyrgyz 9 regions 2 categories: Urban and rural Republic Tajikistan 5 regions 2 categories: Urban and rural 39 7.1.6.6 Sample Strata Estimation After creating initial strata and estimating their size (i.e. their proportion in population and in sample), respondents are distributed to initial strata using proportional criterion – percentage of households per stratum is proportional to its size, i.e. percentage of households in sample strata is the same as percentage of households in population strata. For national representative samples, we are actually matching population strata proportions that we got from Census and other relevant surveys with huge samples in order to get the sample structure that is identical to population structure. Number of households in cell (strata=region*type_of_settlement) is calculated using following formula: No_of_households_in_strata_(cell) = Percentage_of_ households _in_strata_(cell) / 100 * No_of_ households_in total (within total sample size) For Kyrgyz Republic and Tajikistan number of households in the strata was calculated based on population data, since data about households were not available. No_of_respondents_in_strata_(cell) = Percentage_of_ respondents _in_strata_(cell) / 100 * No_of_ respondents_in total (within total sample size) 7.1.6.7 Sampling and allocation of clusters Based on planned total sample size and number of households per cluster, number of clusters was estimated using following formula: No_of_clusters = No_of_households_in_strata_(cell) / No_of_ respondents_per_sampling_point Selection of clusters in Eastern European countries An appropriate unit was designated for use as PSUs. PSUs had several requirements: o Appropriate size: sufficiently small so that travel distances are minimized between households whilst ensuring the sample is dispersed across the full area giving every household an equal chance of selection; but not too small as this may exacerbate the loss in precision from clustering as smaller areas tend to be more homogeneous; o Up-to-date data required for sample selection (size of the PSU where PPS used), stratification and weighting; and o Non-overlapping, with clear geographical boundaries. Specification of final sampling frames per country is presented on the table below : COUNTRY SAMPLING FRAME YEAR PSU TYPE NUMBER SELECTION (F2F) OF UNITS METHOD Albania List of polling 2013 Polling stations 5504 PPS station territories Kosovo List of polling 2014 Polling stations 2374 PPS station territories Serbia List of polling 2014 Polling stations 8233 PPS station territories 40 Bosnia and List of polling 2014 Polling stations 5254 PPS Herzegovina station territories Based on total sample size and required number of successful contacts (20), defined number of PSUs for each eastern European country is presented on the table below: COUNTRY Selected number of Number of interviews Total sample size PSUs (within total sample size) within PSUs Albania 160 20 3200 Kosovo 200 20 4000 Serbia 400 20 8000 Bosnia and 320 20 6400 Herzegovina After calculating exact allocation of clusters, we draw them within strata. Clusters (PSUs) were sampled with probability proportional to their size (using Lahirie PPS Cumulative algorithm). Selection of clusters for Central Asian countries In Tajikistan and Kyrgyz Republic there were no proper sampling frame, so some modifications of the original sampling design had to be done in order to overcome this issue. In these countries PSU was settlement. Large settlements chosen in first stage were clustered into Secondary Sampling Units (SSU), i.e. they were divided into segments of approximately equal size. Small settlements were not divided. In Kyrgyz Republic list of all settlements with their size was used, so choice of settlements (PSUs) in each stratum was done by using Probability Proportional to Size (PPS) design. Choice of SSUs in large settlements was done with equal probabilities. In Tajikistan list of urban settlements with their size and list of rural settlements without their size was used. So in each urban strata choice of settlements was PPS, and in rural strata the choice was with equal probabilities. Choice of SSUs in large settlements was done with equal probabilities. In second stage, sample of SSUs was selected. Based on total sample size and required number of successful contacts (20), defined number of clusters is presented on the table below: 41 COUNTRY Selected number of Number of interviews Total sample size SSUs (within total sample size) within SSUs Kyrgyz 400 20 8000 Republic Tajikistan 450 20 9000 7.1.6.8 Selection of households/addresses In the next stage, a set number of households were sampled from within each of the sampled cluster. In all selected countries, since there is no register of addresses, households were selected by using random walk. Random walk implies that the interviewer selects respondent for interview during fieldwork using a standard set of instructions. The random starting points (starting address) were selected by the project/fieldwork manager. This was the responsibility of the national teams. Interviewers were informed of their starting point, after which the random walk technique is used to select the dwellings. A standard set of random walk guidelines was issued to ensure the selection of households that was independent of the interviewer’s decision. The addresses were selected as every nth address from the specified starting point, using a standard random route procedure (for example right hand rule). During the random route procedure, the interviewer performs both household selection and interviewing. Uniform procedures for all interviewers were ensured. All included interviewers had extensive experience in using random route. Nevertheless, both country managers and interviewers had training on how to perform random route technique. 7.1.6.9 Selection of respondent in the household After establishing contact with the household, interviewers asked the following statement: “At first, could you please tell me if you or anyone in your household received remittances, that is, money from relatives or friends from abroad in the last 12 months?” In case there was no remittance recipient in the selected household, defined by question above, the interviewer records this information and continues with selection of household according to defined procedure. In case that there is a remittance recipient within the household, the interviewer is conducting interview using questionnaire for remittance recipient. Within each household where remittance recipient is present, interview was conducted with the household member who is usually ‘in charge’ of withdrawing the received remittances from abroad. This means that within selected household the interview was conducted with the household member who is usually in charge of withdrawing remittances received by the household from abroad, that is, who is usually visiting location where remittances are withdrawn. In case that selected respondent is not available for an interview at the time of establishing the contact, the interviewer will visit the household again to try to obtain the interview 42 7.1.6.10 Adapting samples throughout the fieldwork - reactions to unexpected deviations from estimated percentage of remittance recipients Since all samples in this research were planed accordingly to estimations of percentage of remittance recipients in each country, all larger deviations from that percentage required ad-hoc adaptation of samples. In Serbia fieldwork progress gave only around 5% of remittance recipients instead of assumed 10%. This problem was resolved by assigning additional number of completed interviews with remittance recipients without following the random route, but within the assigned PSUs. Number of additional interviews to be completed within each PSU was determined based on distribution of remittance beneficiaries in PSUs in sample based on 20 contacts with codes 51 'There is no remittance receiver in household/No eligible respondents' and 62 'Completed interview'. In Kyrgyz Republic fieldwork progress gave around 15% of remittance recipients instead of assumed 10%. This issue was resolved by reducing the number of contact needed in particular region based on the field progress particular moment. In Tajikistan fieldwork progress gave around 50% of remittance recipients instead of assumed 9%. This issue was resolved by reducing the number of contacts needed in all clusters in the country since the field progress was going uniformly in each region and this solution was possible. In Kosovo fieldwork progress gave more than 50% of remittance recipients instead of assumed 20%. This issue was resolved by reducing the number of contact needed in all clusters in the country since the field progress was going uniformly in each region and this solution was possible. In Bosnia and Herzegovina and Albania there were no changes in initially planned samples. Realized samples by country are presented on the table below: COUNTRY Total sample Estimation of Total sample % of Effective Effective size % remittance size remittance sample size - sample size - (successful recipients in (successful recipients in planned realized contacts) - total contacts) - total planned population achieved population - realized4 Albania 3200 25% 3221 25% 800 805 Kosovo 4000 20% 2358 50% 800 1354 Serbia 8000 10% 8495 5% 800 851 (371 within main sample) Bosnia and 6400 12.5% 6344 13% 800 833 Herzegovina Kyrgyz 8000 10% 5728 15% 800 819 Republic Tajikistan 9000 9% 1873 50% 800 1053 4 % of remittance recipients in Kosovo, Serbia, Kyrgyz Republic and Tajikistan is given based on observed percentage on successful contacts before adaptation of samples 43 7.1.7 Response rate The response rates show the ratio of completed interviews not to the total number of issued addresses or individuals, but only to those respondents who were potentially eligible to take part in the survey. Having in mind that this survey includes specific target group, that is, persons who received remittances from abroad in the last 12 months, there are two response rates that can be calculated: one which is taking into account situations where it was possible to determine eligibility of potential respondent and second, which observed only situation were eligibility is determined and confirmed. First response rate – overall response rate is proportion of population willing to participate in the survey regardless of eligibility among total population of contacted households. This response rate is calculated using formula: RR1 (Overall Response rate) = No_of_contacts with outcome 51 and 62)/(No of contacts with outcomes 21 to 62)*100 Second response rate - Response rate among remittance recipients is proportion of completed interviews among population who is determined as eligible. This response rate is calculated using formula: RR2 (Response rate among remittance recipients) = No_of_completed interviews)/(No of contacts with outcomes 41-44 and 62)*100 Response rates achieved in surveyed countries are presented on the table below: COUNTRY Overall Response rate among remittance recipients response rate Albania 67% 60% Kosovo 79% 90% Serbia 5 65% 53% Bosnia and Herzegovina 71% 78% Kyrgyz Republic 85% 82% Tajikistan 71% 80% 7.1.8 Description of weighting procedure Ideally, a selected sample is a miniature of the population it came from. A sample should be representative in those characteristics of the population that can influence the subject of the measurement. However, due to different factors, structure of realized sample always deviates from structure of the population. Weighting is a method for correcting those biases in the survey sample and taking account of population differences. The aim of the weighting procedure is to statistically correct discrepancies in those characteristics between population 5 Response rate is calculated based on outcomes in the moment adaptation of sample 44 and realized sample and to correct the possible lack of representatives. When a sample is well planned and realized, weighting makes only minor changes in structure of the sample in order to reach proportions found in population. In these researches a demographical rim (random iterative method) weighting on demographics was used. The parameters used for weighting were: region, degree of urbanization and number household members. In this way we ensured that the realized sample kept the proportions of number of members in households inside every region in urban and rural environments, which exists in populations of the researched countries. For the Kyrgyz Republic and Tajikistan, where data about number of members in households by region and degree of urbanization, were not available, a general population estimates that were available were used. That is a number of citizens (instead of number of members in households) by regions and degree of urbanization. 45 7.2. Sample allocation 7.2.1 Albania Number of PSU's Type of settlement 1 Urban 2 Rural Total Regions North Diber 2 5 7 Kukes 1 2 3 Lezhe 4 3 7 Shkoder 6 6 12 Central Durres 11 4 15 Elbasan 7 9 16 Tirane 32 12 44 South Berat 4 4 8 Fier 8 10 18 Gjirokaster 3 2 5 Korce 6 8 14 Vlore 7 4 11 Total 91 69 160 7.2.2 Kosovo Number of PSU's Type of settlement 1 Urban 2 Rural Total Regions Pristina (central part) 33 36 69 Northwest 18 21 39 Southwest 14 22 36 North 14 14 28 Southeast 10 18 28 Total 89 111 200 46 7.2.3 Serbia Number of PSU's Type of settlement 1 Urban 2 Rural Total Regions Vojvodina 66 44 110 Belgrade 82 16 98 West Serbia 18 24 42 Sumadija 36 28 64 East Serbia 18 16 34 South Serbia 28 24 52 Total 248 152 400 7.2.4 Bosnia and Herzegovina Number of PSU's Type of settlement 1 Urban 2 Rural Total Federation of B&H Unsko-sanski kanton 12 12 24 Tuzlanski kanton 26 18 44 Zenicko-dobojski kanton 18 16 34 Srednjobosanski kanton 10 12 22 Hercegovacko-neretvanski kanton 12 8 20 Zapadno-hercegovacki kanton 2 4 6 Kanton Sarjevo 36 6 42 Livanjski kanton 2 4 6 Posavski kanton 2 2 4 Bosansko podrinjski kanton 2 2 4 Republic of Srpska Sjever Republika Srpska 36 32 68 Istok Republika Srpska 20 20 40 Brcko District Distrikt Brcko 4 2 6 Total 182 138 320 47 7.2.5 Kyrgyz Republic Number of PSU's Type of settlement 1 Urban 2 Rural Total Regions Gorkenesh G.Bishkek 60 0 60 Gorkenesh G.Osh 20 0 20 Issyk-Kulskaya Oblast 10 25 35 Dzhalal-Abadskaya Oblast 15 60 75 Narynskaya Oblast 5 15 20 Batkenskaya Oblast 10 25 35 Oshskaya Oblast 10 75 85 Talasskaya Oblast 5 15 20 Chujskaya Oblast 15 45 60 Total 150 260 410 7.2.6 Tajikistan Number of PSU's Type of settlement 1 Urban 2 Rural Total Regions Gbao 5 10 15 Sogdiyskaya Oblast 35 100 135 Hatlonskaya Oblast 30 125 155 City Of Dushanbe 45 0 45 Rayony Respublikanskogo Podchineniya 15 90 105 Total 130 325 455 48 7.3. Migration trends within 6 ECA countries 7.3.1 Albania Albanian emigration has had three key phases: an early outflow of emigrants prior to 1944, those who left 1945-1990, and a significant outflow following the 1990 breakdown of the communist regime. 1. Prior to 1944 the main destination countries for Albanian emigrants, were the USA and some Latin American states. Most of the people who left the country in this period did so because of economic push factors. During the 1920s and 1930s Albanian immigration to the USA increased, with migrants originating predominantly from southern parts of Albania. 2. Starting in 1944, the communist regime closed Albanian borders, which significantly limited outbound migration until 1989-90, when political tensions ceased. 3. During this period (1989-90) inflation was 350%; GDP was plummeting by 50% year-on-year and unemployment was on the rise. The post-1990 migration can be broken down into the 1991-1992 stream, when approximately 300,000 Albanians left the country; the 1992-1996 stream, when a similar number migrated, despite the temporary improvement of the economy and better border controls; and the 1996-1997 stream, immediately after the collapse of various pyramid schemes for the investment of private savings (including many emigrants’ remittances). These collapses led to a period of both political and economic turmoil and brought another stream of migration to Italy in early spring of 1997. Since 1998, a gradual improvement in the overall conditions in the country and favorable immigration policies in Greece and Italy, increased legal migration and reduced illegal flows. The U.S. and Canada again emerged as relevant destination countries after 1995. For both Greece and Italy, the 2001 census highlighted the fact that females accounted for around 20 percent of total Albanian migrants in the early and mid-1990s and by 2000-2001 the share had increased to approximately 40 percent of total Albanian migrants (King 2003). The majority of females have migrated, either together with the family (the Diversity Visa programme – USA), or to Canada through the Skilled Worker Visa programme or following their husband/fiancé. Albania also plays host to 500,000 ethnic-Albanian Kosovan refugees entering through northern Albania. The migrations of Albanians from Kosovo through the northern country border have created a new wave of migrants from Albania towards other European asylum destinations By the end of 2008 over 1 million Albanian citizens were estimated to be living abroad. The Albanian government, in their National Strategy on Migration, highlighted 3 main motives driving outward migration from the country. These were; 1. Economic factors: lack of employment opportunities as well as poor living conditions. 2. Public security: political turmoil is the other main cause of emigration. 3. Weak institutions: The two main characteristics of the state institutions are corruption and organized crime. Some of the main pull factors that encourage Albanians to leave their country are: higher wages in the west and labor market demand for a cheap labor force in several sectors including; agriculture, construction, tourism etc.; better living conditions and better opportunities for the children of migrants. 49 Three types of international migration in Albania can be identified. Short-term international migration (for periods of days, weeks, or months), this is almost entirely connected to Greece; and long-term international migration, to Greece, Italy and to other countries of the European Union; as well as long-term international migration to the US and Canada. Economic Context According to the data supplied by Albanian Institute of Statistics GDP has increased by 2.15% in the fourth quarter of 2016 if compared with the fourth quarter of 2014. The economy is relatively diverse with key contributors to economic growth including; construction, trade hotels, restaurants and transport, public administration, education and health, ‘other services’ and information and communication. Albania6 Indicator Units 2015 2016 Gross domestic product, constant prices % 2.639 3.433 Gross domestic product per capita, current prices U.S. dollars 3,995.38 4,253.29 Inflation, average consumer prices Index 119.32 121.63 Percent of total labor Unemployment rate force 17.1 16.85 Shaded cells indicate IMF staff estimates Total outward migration from Albania in 2015 is 1,122,910 and that’s 27.94% of all citizens of Albania. Albania emigration (top 10 countries) 7 Italy 447,586 Greece 437,356 USA 81,196 Macedonia 67,799 Germany 18,043 Canada 15,265 United Kingdom 14,688 Belgium 7,517 France 6,695 Australia 3,334 6 World Bank 7 International Organization for Migration 50 7.3.2 Bosnia and Herzegovina Some estimates suggest that the B&H diaspora accounts for more than 50% of the B&H population. For the period 2002-2011 annual average inflows of international remittances were around 1.6 billion EUR or from 13 to 18% of GDP (World Bank data). For a large proportion of population these remittance inflows are a significant source of income. We can identify a few major waves (periods) of emigration from Bosnia and Herzegovina: 1. 1960’s and 1970’s: The first large migration stream from Bosnia to various parts of the world (Australia, America, Canada, Germany, Austria and Switzerland), occurred during this period. Emigrants tended to be low – medium skilled workers. 2. 1992 – 1995: Because of the war a part of population fled to countries of the European Union, North America and Australia. The number of refugees that fled Bosnia and Herzegovina at this time was estimated to be over one million people. As of 2010, The World Bank estimates that the stock of emigrants from Bosnia and Herzegovina was 1.461 million. 3. Post 1995: The signing of The Dayton Peace Agreement included provisions for the safe return of close to 500,000 displaced persons and 370,000 refugees. Unfortunately, this did not happen. Since the signing of the agreement 110,000 Bosnia and Herzegovina citizens have emigrated from Bosnia and Herzegovina, with the majority coming from the younger generation. Economic Context Comparative data provided by The Agency for Statistics of Bosnia and Herzegovina, estimates the growth of GDP in real terms to be constant, at 2.1% during the last quarters of 2014 and 2015. Economic output is derived from : administrative and support service activities (10.9%); agriculture, forestry and fishing (8.3%) and manufacturing (7.1%). Electricity, gas, steam and air conditioning supply 6.1%, Water supply; sewerage, waste management and remediation activities 3.5% and Transport and storage 1.7% recorded limited growth for the same period. Bosnia and Herzegovina 8 Indicator Units 2015 2016 Gross domestic product, constant prices % 2.8 3 Gross domestic product per capita, current 4,088.21 4,235.34 prices U.S. dollars Inflation, average consumer prices Index 140.382 139.427 Percent of total labor 27.7 26.5 Unemployment rate force Shaded cells indicate IMF staff estimates 8 World Bank 51 Total number of migrants from Bosnia and Herzegovina was 1,650,772 people in 2015, and this accounts for 30.23% of all citizens of Bosnia and Herzegovina. Bosnia and Herzegovina emigration (top 10 countries) 9 Croatia 404,874 Serbia 335,992 Germany 199,837 Austria 155,164 USA 122,190 Slovenia 105,313 Sweden 58,583 Australia 41,449 Canada 39,583 Montenegro 34,259 7.3.3 Kosovo Emigration from Kosovo appears to be driven by a need to reunite with family members; illegal migration of unskilled and undereducated workers and (temporary) legal migration of highly skilled and highly educated individuals through study or work programs. 1. Late 1960s – early 1970s: This is a period of emigration mainly to Germany and Switzerland. The majority of emigrants originated from rural communities with no or very limited education. Special contracts were given to them, with the intention of keeping them as temporary workers. Despite various programs of encouragement to return to Kosovo, most of them chose to stay in the host country and make a living there. 2. 1989-1997: Emigrants were mostly individuals who escaped from the mandatory military services. These were better educated and skilled individuals that came from both rural and urban areas. This trend coincided with significant state job losses, which added to the high volume of emigration during this period. 3. 1998-1999: The outbreak of war resulted in forced emigration and massive population displacement during this period. More than 800,000 people fled Kosovo, mainly as refugees’ destined for one of Macedonia, Albania, Western Europe or the US. A large proportion of those that fled the country returned once conflicted had ended (in 1999). 4. Post 1999: Between 2008 and 2014 around 120,000 are estimated to have left Kosovo. However, this number can’t be considered entirely accurate, given that many Kosovars migrate with Serbian passports. Current migration from Kosovo is driven by those seeking better living standards in the EU and/or USA. Currently, reliable data on the number of people to have left the country is limited, 9 International Organization for Migration 52 however some estimates place the figure for those believed to have migrated via irregular routes at 50,000. The continued flow of illegal migration highlights the economic and social challenges that still hamper Kosovo’s post conflict development and ongoing recovery. In February 2015, a survey conducted by IVS (Initiative for Social Actions), identified the main push factors of the recent wave of illegal immigration as: economic instability (69.66%), disappointment and disbelief in the country’s institutions (54%), lack of prospect for a better life (41%), social reasons (26.33%), and political reasons (27.66%). A survey conducted by USAID in 2014, discovered that only 21% of citizens were satisfied with the work of their government. Economic Context The Kosovo Agency of Statistics estimates that the real GDP growth in the fourth quarter of the previous year (2015), amounted to 5.0%. Real growth of the gross value added was recorded in: Construction 25.6%, Hotels and Restaurants 10.3%, Finance and Insurance 9%, Transport and Storage 8.6%, Electricity and Water 7.6%, Retail 6%, meanwhile Public Administration decreased by 7.3%. During 2013 the highest remittance inflows to Kosovo came from Germany 34% and Switzerland 23%, also lower levels of remittance inflows came from countries where Kosovo diaspora is concentrated: Italy (7%), Austria (6%), Belgium (3%), US (4%), Sweden/France (3%). Kosovo 10 Indicator Units 2015 2016 Percent 3.3 3.4 Gross domestic product, constant prices change Gross domestic product per capita, current prices U.S. dollars Inflation, average consumer prices Index 126.881 127.155 Percent of total labor Unemployment rate force 10 IMF 53 The flow of inbound remittances has decreased in the post-crisis period and one of the reasons can be the behavior of remittances over time: remittances tend to increase in the first years of migration until they reach a peak and then they start to decline. It was estimated that, in case of Kosovo, this decline would happen in the 9th to 10th year of migration (Havolli, 2009). Remittance inflows - by countries11 Year Description Total Germany Switzerland Italy Austria Belgium USA Sweden France Q1 100 35.2 21.8 5.0 3.9 3.3 8.1 2.9 3.6 Q2 100 36.9 21.6 3.6 3.5 2.3 8.2 2.5 1.6 2015 Q3 100 35.9 23.8 5.6 3.4 2.1 7.4 3.2 3.7 Q4 100 38.8 22.2 5.1 3.3 2.2 8.4 2.9 3.3 7.3.4 Serbia Throughout history there have been several key migration routes from Serbia. These include; 1. To the West and North, because of the invasions of Ottoman Turks; 2. To the East (Czechoslovakia, Russia and Ukraine) between WWI until the fall of communism in the 1990; 3. To North America (USA and Canada), Australia and New Zealand due to economic reasons; 4. A mass exodus between 1991-1995 due to the breakup of Yugoslavia as well as a devastating economic crisis. First post war data on migrants from Serbia as temporary workers were obtained from the 1971 Census (around 204 thousand people). During the second half of 1970s there were more people coming back to the county than those leaving. According to the data provided by the 1981 Census, the number of emigrants working abroad temporarily decreased to 65 thousand. The main push factors of emigration during this time, were deep political tensions, a reduction in economic output and a resulting high unemployment rate, hyperinflation alongside an overwhelming sense of disenfranchisement amongst the younger population. Between 1991-2002, the number of those emigrating increased drastically to more than 140 thousand. Whilst the official figure places the total number of emigrants at 415,000, the real figure is believed to be considerably higher given the economic and social environment of the time. It is also believed that the disparity is in part due to the incredibly high number of individuals leaving irregularly, to seek asylum overseas. Since the 1990’s it is believed economic migrants dominate the outward flow from Serbia. Per the 2011 census, migration has decreased. This is due to many factors, including the fact that the census was not representative, omitting specific segments of the population, namely the Albanian community. 11 Central bank of Kosovo 54 Economic Context The growth of GDP in real terms in the fourth quarter of 2015, compared to the same period of 2014, amounted to 1.2 %. Viewed by activities, significant real growth was recorded in construction 8%, the sector of industry and water supply, sewerage, waste management and remediation 6.8% and financial and insurance activities 4.1%. Real falls was recorded in agriculture, forestry, and fishing (6.7%). Serbia 12 Indicator Units 2015 2016 Gross domestic product, constant prices % 0.741 1.75 Gross domestic product per capita, current 5,119.76 5,241.42 prices U.S. dollars Inflation, average consumer prices Index 181.819 184.861 Percent of total labor 18.51 18.692 Unemployment rate force Shaded cells indicate IMF staff estimates Total outward migration from Serbia in 2015 was 964,585 people that accounts for 9.83% of all citizens of Serbia. Serbia* emigration (top 10 countries) 13 Austria 195,177 Switzerland 168,629 France 84,701 Croatia 52,185 Italy 45,581 Australia 37,967 Montenegro 17,433 Sweden 9,295 Bosnia and Herzegovina 9,223 United Kingdom 9,008 *Including Kosovo 12 IMF 13 International Organization for Migration 55 7.3.5 Kyrgyzstan There have been 3 main stages to migration trends from Kyrgyzstan; 1. 1991 to 1994. – An economic crisis and worsening inter-ethnic relations resulted in the mass emigration of Russian‐speaking people from the country. 2. 1995 to 2005. - An improvement of basic economic development indicators as well as growth of the population’s income stabilized the migration situation. However, from 2000-2005 a noticeable increase in labor migration was observed – with specific ethnic groups continuing to leave the country. 3. 2006 till present – A continued economic slump, political instability, and the global financial crisis has resulted in sustained migration from the Kyrgyz Republic. Unlike previous times of high migration, outward flows are across ethnic groups, seeking better living standards overseas. Accurate data on official numbers of Kyrgyzstani migrants residing in Russia is limited. This is mainly because the main migration routes are irregular and therefore hard to track. Russia’s Federal Migration Service (FMS) estimates that 500,000 Kyrgyz workers have permits to work in the country, however experts estimate that there are at least as additional 1 million workers without proper documentation, working in the construction or services industries. Laws governing the entry and work status of migrant workers in Russia are becoming increasingly stringent, making it harder to obtain work permits on the one hand and easier to find and deport workers without permits on the other. In January 2013 a database of migrants was set up, and those who are found to be breaking administrative rules in Russia are now added to this ‘blacklist’ and are subject to deportation. 97% of all remittances to Kyrgyzstan come from Russia. The volume of remittances in Kyrgyzstan was affected by low oil prices, tighter immigration policy, depreciation of the ruble and deterioration of the economic situation in Russia. In both Kyrgyzstan and Tajikistan, the “missing men phenomena” is wide-spread, resulting in shifting gender roles within households, alongside a significant gender imbalance. Economic Context According to the preliminary estimates, GDP per capita has decreased by 4.9%. The decrease was seen in industry, transport and storage of goods. Kyrgyzstan14 Indicator Units 2015 2016 Gross domestic product, constant prices % 3.469 3.515 Gross domestic product per capita, current U.S. dollars 1,112.81 995.251 prices Inflation, average consumer prices Index 298.096 314.435 Unemployment rate Percent of 7.47 7.379 14 IMF 56 total labor force Shaded cells indicate IMF staff estimates Total number of migrants from Kyrgyzstan was 760,847 people in 2015, and this accounts for 11.35% of all citizens of Kyrgyzstan. Kyrgyzstan emigration (top 10 countries) 15 Russia 591,349 Germany 83,673 Ukraine 26,729 Tajikistan 11,667 Kazakhstan 6,734 USA 5,517 Belarus 5,234 Uzbekistan 4,894 South Korea 2,747 Azerbaijan 2,556 7.3.6. Tajikistan Since 1997, the main form of migration has been labor migration, almost exclusively to Russia. Three defined waves of labor migration can be distinguished since independence: 1. The first wave of migration occurred from the early to mid-1990s. This was of highly educated migrants employed in the health and education sectors, as well as in the extractive (oil and gas), metallurgical, engineering and construction industries in Russia (Olimova and Bosc 2003: 23). Economic boom in Russia is the predominant reason behind this wave of migration, followed by a sharp decline in living conditions and public sector salaries in Tajikistan. 2. At the end of 1990s, the rural population also started to migrate due to the devastation resulting from war. These were less educated, older people, usually heads of households. During this period Tajik migrant worked in services, private construction, and agricultural enterprises. 3. The vast majority of present day migrants are aged between 18 to 29. These emigrants often have no specialized education and very little knowledge of the Russian language. The main push factors include poverty, instability, and high birth rates. Some estimates indicate that 15 International Organization for Migration 57 approximately 600,000 Tajiks leave the country every year for seasonal work or for medium-term periods of work. After Russia, Uzbekistan and Kazakhstan are preferred host countries, however Russia tends to be preferred because Tajik citizens do not require a visa for Russia and Russian migration statistics do not capture temporary and undocumented migration movements if they stay less than 90 days – making it relatively easy to move back and forth between countries. With that said there have been a number of reforms and tightening of controls, and as of January 1, 2015, a decree issued by the Russian government stated that citizens of Tajikistan are now prohibited from entering Russia without international travel passports. Economic Context Given the sustained downward pressure of commodity prices, it is unsurprising that GDP growth has declined by 6.1% between the period of 2014-2015. GDP went from 7.4% in 2013 to 6.7% in 2014. A reduction in remittances and terms of trade have had a significant impact on the economy. Despite lower household income, retail trade showed 5.5% of increase while the service sector increased in volume by 7%. Tajikistan16 Indicator Units 2015 2016 Gross domestic product, constant prices % 3 3 Gross domestic product per capita, current U.S. dollars 922.072 721.55 prices Inflation, average consumer prices Index 1,200.89 1,311.35 Percent of total labor n/a n/a Unemployment rate force Shaded cells indicate IMF staff estimates Total number of migrants from Tajikistan was 589,748 people in 2015, and this accounts for 6.5% of all citizens of Kyrgyzstan. Tajikistan emigration (top 10 countries) 17 Russia 466,508 Germany 29,985 Ukraine 29,367 Kazakhstan 15,816 Afghanistan 15,013 Uzbekistan 11,496 16 IMF 17 International Organization for Migration 58 Belarus 5,679 USA 4,331 Kyrgyzstan 2,205 Israel 1,885 59 7.4. Survey questionnaire A SCREENING QUESTIONS [INT] Research company Ipsos is currently conducting a survey among recipients of remittance in order to understand the behaviours, needs, and level of satisfaction with current remittance products and services. We are looking for persons who received remittances from abroad in the last 12 months. Remittances are defined as cross-border person-to-person payments of relatively low value, typically recurrent. S1 At first, could you please tell me if you or anyone in your household received 1. Yes S2 remittances, that is, money from relatives or friends from abroad in the last 12 months? 2. No End S2 Thinking about all received remittances by your household in the past 12 months, are 1. Yes you the person who is usually withdrawing received remittances from abroad? 2. No [INT] In case that the answer is No, ask to speak with household member who is usually ‘in charge’ of withdrawing received remittances by your household from abroad A1 A Introductory questions A1 At first, could you please list all persons from whom you or any member of your household received remittances from abroad in the last 12 months? Please list all persons who send remittance to any member of your household even if you don’t receive remittance from that person. A1b. Age A1e. What is the place of residence of remittance sender? A1c. Gender A1f. How often do you receive remittances from this person? 1. Male 1. Monthly (at least once a month) 2. Female 2. 4-6 times a year A1d. Month and year of departure 3. 2-3 times a year [INT] In case remittance sender is born abroad, mark Ø Born 4. Once a year abroad. In case remittance sender was departing several times, A1g. What is the share of remittance received from this please mark month and year of departure after which you started remittance sender in total yearly househol%d income? Could receiving remittances from this person you please give as an estimation in percentages A1a. A1b. Age A1c. A1d. Month and year of departure A1e. Place of A1f.Frequency of A1g. Share of Relationship Gend residence - Country receiving remittance in total with er remittances yearly household remittance income sender 1. Person 1 ______ 1 2 1. Permanent departure ______ _________ ______% 2. Seasonal work _________ 1 2 3 4 RF (Refuse to answer – Ø Born abroad don’t read) 2. Person 2 _______ 1 2 1. Permanent departure ______ _________ ______% 2. Seasonal work _________ 1 2 3 4 RF (Refuse to answer – Ø Born abroad don’t read) 3. Person 3 _______ 1 2 1. Permanent departure ______ _________ ______% 2. Seasonal work _________ 1 2 3 4 RF (Refuse to answer – Ø Born abroad don’t read) 4. Person 4 _______ 1 2 1. Permanent departure ______ _________ ______% 2. Seasonal work _________ 1 2 3 4 RF (Refuse to answer – Ø Born abroad don’t read) 5. Person 5 _______ 1 2 1. Permanent departure ______ _________ ______% 2. Seasonal work _________ 1 2 3 4 RF (Refuse to answer – Ø Born abroad don’t read) A2 [INT] In case respondent/household received remittances from abroad in the past 12 months from more than one person, in the next section he/she should talk about remittance sender with the highest frequency (A1f). In case he/she is receiving remittances from two or more persons with the same frequency, he/she should talk about the remittance sender with the highest share in total yearly household income (A1g). A2. Selected remittance sender is: 1. Person 1 2. Person 2 3. Person 3 4. Person 4 60 5. Person 5 B REMITTANCE TRANSFER –FREQUENCY, METHOD AND AMOUNTS Now, please think about remittances received from abroad in the last 12 months…[INT] In case respondent/household is receiving remittances from more than one person, ask about remittances received from person marked in the question A2 B1 How long have you been receiving remittances from abroad? 1. Less than 2 years 2. From 2-5 years 3. From 6-10 years 4. More than 10 years B2 B2 Do you receive remittances on regular basis or on special 1. Regularly (in regular time intervals, same number of occasions/needs? remittances and same/similar amount each time) [INT] Multiple responses possible 2. Occasionally (from time to time) 3. On special occasions (for holidays or some personal celebrations such as birthdays, family celebrations) 4. For special needs (School fees, Illness/doctor bills, death in family, marriage) B3 B3 How do you receive remittances from abroad? B3a. Please specify all ways of receiving remittances in the last 12 months. [INT] Show card. Multiple responses B3b. Could you please indicate the one you use the most frequently? [INT] Show card. One answer only B3a. All ways of B3b. The most receiving remittance frequent way of receiving remittance 1. Hand carried by the person who sends (or brings) remittances 1 1 2. Through bank (without sending to the bank account) 2 2 3. Through Post office 3 3 4. Through a money transfer operator (via Western Union, MoneyGram, RIA, 4 4 others) 5. Into a bank account 5 5 6. Hand carried by a relative or other individual 6 6 7. Into a e-wallet 7 7 8. Into a mobile phone account (airtime) 8 8 9. Into a payment card (prepaid or debit card) 9 9 10. Bus driver (or other transport operator) 10 10 95. Other (specify) _____________________________ 95 95 B4 B4 What are the main reasons for using most frequently [INT] 1. Lowest cost of the money transfer method marked on question B3b…as the method of remittance 2. Efficiency / fast transfer transfer? 3. Reliability / safety [INT] Multiple responses 4. Closest access (pick up) points 5. The only available possibility 95. Other, please specify__________________ B5 B5 Overall, to what extent are you satisfied with the method of 1 2 3 4 remittance transfer that you use the most frequently, that is, [INT] method marked on question B3b….? Completely Mostly Mostly Completely [INT] If answer to B5 is 1 or 2 go to B6, otherwise go to B7 unsatisfied unsatisfied satisfied satisfied B6 B6 [INT] If respondent is not satisfied with the method of remittance 1. High costs/fees for money transfer transfer used most frequently (answer 1 and 2 on B5) 2. Lack of reliability / safety Can you please tell me the reason why you are not satisfied 3. Distant access (pick up) points with remittance transfer method that you use most frequently? 95. Other, please specify__________________ B7 61 B7 Could you tell me the currency in which you are receiving 1. ALL - Lek (for Albania only) remittance from abroad? 2. RSD - Dinar (for Serbia and Kosovo only) B7al 3. BAM - Bosnia and Herzegovina convertible mark (for Bosnia and Herzegovina only) B7ba 4. TJS – Somoni (for Tajikistan only) B7tj 5. KGS – Som (for Kyrgyz Republic only) B7kg 6. EUR – Euro 7. USD - United States dollar B7ud 8. CAD - Canadian dollar c 95. 95. Other B7ot h RF Refuse to answer (do not read out) B8ot h B7al [INT] Ask if currency on question B7 is 1 - ALL – Lek or 2. RSD - 1. Up to 30.000 10. 350.001 – 450.000 Dinar 2. 30.001 – 60.000 11. 450.001 – 500.000 Could you tell me the total amount you received in the past 12 3. 60.001 – 90.000 12. 500.001 – 550.000 months using the following scale? 4. 90.001 – 120.000 13. 550.001 – 600.000 5. 120.001 – 150.000 14. 600.001 – 1.200.000 6. 150.001 – 200.000 15. 1.200.001 – 1.800.000 7. 200.001 – 250.000 16. 1.800.001 – 2.500.000 8. 250.001 – 300.000 17. Over 2.500.000 9. 300.001 – 350.000 RF Refuse to answer (do not read out) B8al B7ba [INT] Ask if currency on question B7 is 3 - BAM – BIH convertible 1. Up to 500 10. 6.001 – 7.000 mark 2. 501 – 1.000 11. 7.001 – 8.000 Could you tell me the total amount you received in the past 12 3. 1.001- 1.500 12. 8.001 – 9.000 months using the following scale? 4. 1.501 – 2.000 13. 9.001 – 10.000 5. 2.001 – 2.500 14. 10.001 – 20.000 6. 2.501 – 3.000 15. 20.001 – 30.001 7. 3.001 – 4.000 16. 30.001 – 40.000 8. 4.001 – 5.000 17. Over 40.000 9. 5.001 – 6.000 RF Refuse to answer (do not read out) B8ba B7tj [INT] Ask if currency on question B7 is 4 - TJS – Somoni 1. Up to 2.000 10. 25.001 – 30.000 Could you tell me the total amount you received in the past 12 2. 2.001 – 4.500 11. 30.000 – 35.000 months using the following scale? 3. 4.501 – 7.000 12. 35.001 – 40.000 4. 7.001 – 9.000 13. 40.001 – 45.000 5. 9.001 – 11.000 14. 45.001 – 90.000 6. 11.001 – 14.000 15. 90.001 – 130.000 7. 14.001 – 18.000 16. 130.001 – 180.000 8. 18.001 – 20.000 17. Over 180.001 9. 20.001 – 25.000 RF Refuse to answer (do not read out) B8tj B7kg [INT] Ask if currency on question B7 is 5 - KGS – Som 1. Up to 20.000 10. 240.001 – 280.000 Could you tell me the total amount you received in the past 12 2. 20.001 – 40.000 11. 280.001 – 300.000 months using the following scale? 3. 40.001 – 60.000 12. 300.001 – 350.000 4. 60.001 – 80.000 13. 350.001 – 400.000 5. 80.001 – 100.000 14. 400.001 – 750.000 6. 100.001 – 120.000 15. 750.001 – 1.200.000 7. 120.001 – 150.000 16. 1.200.001 – 1.800.000 8. 150.001 – 180.000 17. Over 1.800.000 9. 180.001 – 240.000 RF Refuse to answer (do not read out) B8kg 62 B7ud [INT] Ask if currency on question B7 is 6 EUR – Euro or 7.USD - 1. Up to 250 10. 3.001-3.500 c United States dollar or 8. CAD - Canadian dollar 2. 251-500 11. 3.501-4.000 Could you tell me the total amount you received in the past 12 3. 501-750 12. 4.001-4.500 months using the following scale? 4. 751-1.000 13. 4.501-5.000 5. 1.001-1.200 14. 5.001-10.000 6. 1.201-1.500 15. 10.001-15.000 7. 1.501-2.000 16. 15.001-20.000 8. 2.001-2.500 17. Over 20.000 9. 2.501-3.000 RF Refuse to answer (do not B8ud read out) c B7ot Could you tell me the total amount you received in the past 12 Amount ________________________ h months? Please specify the currency in which you are Currency _______________________ B8ot receiving remittance. RF Refuse to answer (do not read out) h B8al [INT] Ask if currency on question B7 is 1 - ALL – Lek or 2. RSD - 1. Up to 6.000 9. 60.001 – 90.000 Dinar 2. 6.001 - 9000 10. 90.001 – 122.000 Could you tell me the usual (average) amount of remittances 3. 9.001 – 12.000 11. 122.001 – 180.000 that you receive on one occasion from abroad using the 4. 12.001 – 18.000 12. 180.001 – 250.000 following scale. 5. 18.001 – 25.000 13. 250.001 – 350.000 6. 25.001 – 30.000 14. 350.001 – 500.000 7. 30.000 – 35.000 15. 500.001 – 600.000 8. 35.001 – 60.000 16. Over 600.000 RF Refuse to answer (do not read out) B9 B8ba [INT] Ask if currency on question B7 is 3 - BAM – BIH convertible 1. Up to 100 9. 951 – 1.500 mark 2. 100 - 150 10. 1.501 – 2.000 Could you tell me the usual (average) amount of remittances 3. 151 - 200 11. 2.001 – 3.000 that you receive on one occasion from abroad using the 4. 201 - 300 12. 3.001 – 4.000 following scale. 5. 301 - 400 13. 4.001 – 6.000 6. 401 - 500 14. 6.001 – 8.000 7. 501 - 600 15. 8.001 – 10.000 8. 601 - 950 16. Over 10.000 RF Refuse to answer (do not read out) B9 B8tj [INT] Ask if currency on question B7 is 4 - TJS – Somoni 1. Up to 450 9. 4.501 – 6.500 Could you tell me the usual (average) amount of remittances 2. 451 - 700 10. 6.501 – 9.000 that you receive on one occasion from abroad using the 3. 701 - 900 11. 9.001 – 14.000 following scale. 4. 901 – 1.300 12. 14.001 – 18.000 5. 1.301 – 1.800 13. 18.001 – 25.000 6. 1.801 – 2.200 14. 25.001 – 35.000 7. 2.201 – 2.600 15. 35.001 – 45.000 8. 2.601 – 4.500 16. Over 45.000 RF Refuse to answer (do not read out) B9 B8kg [INT] Ask if currency on question B7 is 5 - KGS – Som 1. Up to 3.500 9. 35.001 – 55.000 Could you tell me the usual (average) amount of remittances 2. 3.501 – 6.000 10. 55.001 – 75.000 that you receive on one occasion from abroad using the 3. 6.001 – 7.800 11. 75.001 – 110.000 following scale. 4. 7.801 – 12.000 12. 110.001 – 155.000 5. 12.001 – 15.000 13. 155.001 – 250.000 6. 15.001 – 20.000 14. 250.001 – 300.000 7. 20.001 – 25.000 15. 300.001 – 350.000 8. 25.001 – 35.000 16. Over 350.001 RF Refuse to answer (do not read out) B9 63 B8ud [INT] Ask if currency on question B7 is 6 EUR – Euro or 7.USD - 1. Up to 50 9. 501-750 c United States dollar or 8. CAD - Canadian dollar 2. 50-75 10. 751-1.000 Could you tell me the usual (average) amount of remittances 3. 76-100 11. 1.001-1.500 that you receive on one occasion from abroad using the 4. 101-150 12. 1.501-2.000 following scale. 5. 151-200 13. 2.000-3.000 6. 201-250 14. 3.001-4.000 7. 251-300 15. 4.001-5.000 8. 300-500 16. Over 5.000 RF Refuse to answer (do not read out) B9 B8ot Could you tell me the usual (average) amount of remittances Amount ________________________ h that you receive on one occasion from abroad? Currency _______________________ B9 RF Refuse to answer (do not read out) B9 Has the amount or frequency of received remittances from 1. Yes B10 abroad changed in certain period of time? 2. No C1 B10 How did the amount or frequency of received remittances 1. The amount of received remittances is higher change in certain period of time? 2. The amount of received remittances is lower [INT] Multiple responses possible 3. Received remittances are more frequent 4. Received remittances are less frequent B11 B11 When did this change of amount or frequency of received In the last _________ months remittances from abroad occur? B12 B12 What was the main cause for those changes? 1. Change in incomes / possibilities of the remittance sender abroad 2. Change in incomes / needs and circumstances of your household 3. Change in government policy regarding sending/receiving of remittances 95. Other, specify_________________________ C1 C REMITTANCE TRANSFER METHOD USED MOST FREQUENTLY Now, please think about the method you use for receiving remittance most frequently (B4b) C1 What is the most frequent location where you withdraw your 1. Home delivery via the person who sends (or brings) remittance? remittances or relative or other individual [INT] Show card. One answer 2. Money Transfer Operator location (ie. Western Union and similar) 3. Post office 4. Postman home delivery 5. Bank branch 6. Bank remittance outlet location 7. Bank Agent location 8. Mobile phone agent location 9. ATM 95. Other, specify? ______________ C2 C2 How far from your residential address is the location that you a. Time ___________ minutes visit in order to withdraw your remittance? Please specify b. Means of transport time that you need to reach the location and means of 1. Bus/Minibus transport that you use to reach the location? 2. Car 3. Train 4. By foot Ø Not applicable (in case of home delivery or postman home delivery on C1) C3 C3 When you reach the location, do you have to wait in line? If 1. Yes, __________ minutes yes, for how long? 2. No Ø Not applicable (in case of home delivery or postman home delivery on C1) C4 64 C4 Has the location ever been closed when you arrived there 1. Yes, more than 3 times (during its expected hours of operation)? 2. Yes, 1-3 times 3. No Ø Not applicable (in case of home delivery or postman home delivery on C1) C5 C5 Starting from the moment of sending, how long it usually takes 1. Less than one day you to receive the cash remittances 2. One day 3. 2-3 days 4. 4-7 days 5. More than 7 days C6 C6 Are you notified when someone sends you a remittance? 1. Yes, I receive notification on my mobile phone [INT] Multiple responses 2. Yes, I receive notification from my bank 3. Yes, I receive notification by post 4. Yes, I receive notification in some other way, please specify __________ 5. No, I don't receive notification at all C7 C7 Did you have to pay any kind of commission in order to receive 1. Yes, ______% of total amount of remittance the remittance? 2. Yes, fixed amount regardless of the amount of remittance, please specify the amount _____________ 3. Yes, but amount varies depending on place where I withdraw the remittance / depending on time when I withdraw remittance 4. No C8 C8 In which currency do you receive remittances? 1. Local currency C9 2. Foreign currency C11 C9 If you receive remittances in local currency, do you have an 1. Yes C10 option to receive the funds in foreign currency? 2. No, but I don`t need that option since I am using funds in local currency 3. No, but I would like to have an option to receive funds in foreign currency DK Don’t know (do not read out) C12 C10 Who sets the rate at which the funds are converted into 1. It is regulated by the Government/Central Bank domestic currency? 2. It is set by the bank/Post/ Money Transfer Operator/ Mobile phone operator (agent) where I withdraw funds 95. Other, specify? ____________________________ DK Don’t know (do not read out) C12 C11 After receiving funds in foreign currency, you are... 1. Holding funds in foreign currency and using them in foreign [INT] Read answers currency 2. Holding funds in foreign currency and convert them in domestic currency when I need to use them 3. Convert all foreign currency in domestic currency upon receipt. C12 C12 When you withdraw remittances, do you receive them in… 1. Cash C13 [INT] Read answers 2. E-wallet (accessible via mobile, cash kiosk, online) 3. Prepaid cards 4. On my bank account 95. Other, specify? _____________________ C14 C13 If you receive remittances in cash, does the location where 1. Yes, always you withdraw remittance always have sufficient cash for you 2. Yes, but sometimes it happens that I should visit the location to get your remittance? one more time in order to withdraw all funds 3. No, each time I am trying to withdraw funds I must visit the location several times in order to withdraw all funds Ø Not applicable (in case of home delivery or postman home delivery on C1) C14 65 C14 Have you ever experienced any issues in receiving 1. Remittance sent to me was not received remittances from abroad? If yes, please specify. 2. I received less than expected [INT] Show card 3. Commission/fee I had to pay was more than foreseen for this transaction 4. It took more time to receive the remittance than foreseen 95. Other, specify? __________________ C15 96. No I never experienced any issues in receiving remittances D1 C15 If you have experienced issues with receiving remittances 1. Yes from abroad, were they resolved? 2. No C16 C16 Were you familiar with the procedures needed for solving the 1. Yes, the procedure is foreseen by the bank / post office / issues with receiving remittances? financial company used for remittance transfer [INT] Show card 2. No, because the procedure for solving issues is not foreseen by the bank / post office / MTO/ MPO/ financial company used for remittance transfer 3. No, I am not familiar if the procedure for solving issues is foreseen by the bank / post office / MTO/ MPO/ financial company used for remittance transfer C17 C17 How long did it take to solve the issue of receiving _______ days remittances? Ø Issue was never solved C18 C18 How satisfied are you with the help provided by the bank / 1. Completely unsatisfied post office / MTO used for remittance transfer? 2. Mostly unsatisfied [INT] Show card 3. Mostly satisfied 4. Completely satisfied Ø Not applicable (in case of home delivery or postman home delivery on C1) C19 C19 Did experiencing issues with receiving remittances motivate 1. Yes, I changed the method of receiving remittances after that you to think about changing the method of receiving experience remittances? 2. Yes, but I still didn`t find better method for receiving [INT] Show card remittances 3. No, I am still using the same method for receiving remittances D1 D USAGE OF RECEIVED REMITTANCES FROM ABROAD Now, please think about all remittances your household receives. D1 Would you be able to cover your basic family needs if the 1. Yes, the remittance I am receiving is not that important source received remittances by members of the HH didn’t come for a of funds certain period of time? 2. Yes, but I wouldn`t be able to cover all the basic needs 3. No, the remittance is the main source of household income D2 D2 What purpose do you use the received Rank remittances from abroad for? Please rank items on the table according to the 1. FMCG, HH product, appliances and goods (Food and contribution of overall HH income: use ranks beverages, tobacco, Clothes and footwear, physical goods) from 1 to 5, where you will put rank 1 on the 2. Education item to which remittances contribute the most 3. Health and rank 5 for the one to which remittances contribute the least. In case you are not 4. Transport equipment spending remittance on certain item, please 5. Rent/housing costs/Debt payment put 0. 6. Investing in business activities: Agricultural production, Entrepreneurial activity 7. Investments: Buying a flat or a house, construction, renovation and major repairs at home or apartment 8. Emergencies (e.g. illness, accident, disaster) 9. Holidays, vacations, traveling 10. Savings D3 66 D3 D3a. Does your household have any other sources of income, D3b. In what form do you receive that income? beside remittances? [INT] Ask for all items from the table 1. In cash 2. Payment card 3. Into bank account 4. E-money 95. Other, please specify_____________ D3a. D3b. 1. Government salary 1. Yes 2. No 1 2 3 4 95 _____________ 2. Private company (entity) salary 1. Yes 2. No 1 2 3 4 95 _____________ 3. Pension 1. Yes 2. No 1 2 3 4 95 _____________ 4. Own business / vendor / merchant / etc. 1. Yes 2. No 1 2 3 4 95 _____________ 5. Agriculture 1. Yes 2. No 1 2 3 4 95 _____________ 6. Estate renting 1. Yes 2. No 1 2 3 4 95 _____________ 7. Government benefit or other social benefit 1. Yes 2. No 1 2 3 4 95 _____________ D4 D4 Does your household save any money / funds for major 1. Yes D5 purchases, emergencies, school fees, special occasions 2. No (weddings, funerals, etc)? RF Refuse to answer (do not read out) E1 D5 How often is your household able to save some money? 1. Every week 2. Every month 3. Occasionally – when we can 4. Whenever we receive remittances D6 D6 Where do you place your set-aside funds? 5. At home in a secret place 6. With a friend for safe keeping 7. In an account with a bank or a MFI / MDO 8. In an e-wallet, mobile phone account, etc. RF Refuse to answer (do not read out) D7 D7 Would you be able to save some money in case you did not 9. Yes, the same amount receive remittances? 10. Yes, but the amount would be lower 11. No E1 E USAGE OF BANK ACCOUNT AND PRODUCTS E1 Do you have access to any bank account? 1. Yes, I have my own bank account [INT] Multiple answers 2. Yes, I have access to someone else’s bank account E1a 3. No E3 E1a How many bank accounts do you have access to (including ___________ bank accounts you own account)? E2 E2 [INT] Ask for all bank accounts respondent has access to Yes No What do you use these accounts for? 1. Receiving of 1 2 remittances 2. General income / 1 2 spending’s management 3. Loans and credits 1 2 4. Savings 1 2 95. Other, specify _______ 1 2 E4 E3 E3a. Why don’t you have a bank account? Please name up to 3 of the most important reasons [INT] Show card. Up to 3 answers E3b. And what is the main reason why you don`t have a bank account? [INT] Show card. One answer E3a. Top 3 reasons E3b. The most E4 67 important reason 1. No bank available near home or work 1 1 2. Do not trust the banks 2 2 3. Bank processes are too complicated and confusing for me 3 3 4. No money to open bank account / pay for maintenance of the account 4 4 5. Can manage own finances without bank account 5 5 95. Other, specify 95 95 E4 Do you have a payment card? 1. Yes E4a 2. No E6 E4a For what purposes are you using your payment card? 1. ATM withdrawal [INT] Multiple answers 2. POS payments 3. Internet purchases 95. Other, specify __________ E4b E4b When any kind of funds are deposited on your payment card, 1. I always cash the card out completely do you cash the card out completely or you leave some of the 2. I always leave some of the funds on the card funds on the card? 3. Sometimes I cash the card out completely and sometimes I leave some of the funds on the card E5 E5 How often do you use your payment card? 1. Every day 2. Few times a week 3. Few times a month 4. Few times a year 5. Less than once a year E7 E6 Why don’t you have a payment card? 1. No bank available near home or work [INT] Show card. Multiple answers 2. Do not trust the banks 3. Bank processes are too complicated and confusing for me 4. No money to open bank debit card / pay for maintenance 5. Can manage own finances without bank account 6. Don’t have bank account 95. Other reason, specify___________________ E7 E7 [INT] Ask those who didn’t mark banks in B3b (answer 2. and 5.). If 1. Yes E9 respondent marked answer 2. or 5. in B3b, skip to E13) 2. No Have you and your relatives/friends abroad ever used banks for remittances transfer? E8 E8 Why didn`t you use banks for remittances transfer? 1. Didn’t know that bank accounts (or other bank products) can [INT] Show card. Multiple answers be used for remittances transfer 2. No bank available near home or work 3. Do not trust banks 4. Bank processes are too complicated and confusing for me 5. Don’t have a bank account 6. High cost of the remittance transfer 7. To slow / long duration of the money transfer 95. Other reason, specify___________________ E11 E9 How satisfied were you with using a bank for remittances 1 2 3 4 transfer? Completely Mostly Mostly Completely unsatisfied unsatisfied satisfied satisfied E10 E10 Have you experienced any negative aspects of the remittances 1. High transfer costs transfer through a bank? If yes, please specify 2. Unexpected transfer costs [INT] Show card. Multiple answers 3. Unexpected complications in transfer procedures 4. Unexpected time delay in money transfer 5. Loss of the money 95. Other, specify_______________________ 96. No, I have never experienced negative aspects of the E13 68 remittances transfer through bank E11 If you or your relative were not using banks for remittances at 1. Bank offices availability (more bank offices nearby) all, what would influence you and your relative the most to start 2. More adequate working hours of the bank offices using them (more frequent) for remittance transfer? 3. Faster money transfer [INT] Show card. Multiple answers 4. Lower costs of the money transfer 5. Less complicated procedures for remittance receiving/sending 6. More transparent costs of the money transfer 7. More security and safety in money transfer (guaranties) 95. Other, specify______________________ E13 96. Nothing, I would not consider using bank for remittances transfer E12 E12 If you or your relative abroad are not willing to use banks for 1. Post office remittances transfer, which of other, if any, financial 2. Currency exchange office institutions you would consider as an alternative? 3. Insurance company 95. Other, specify____________ 96. None E13 E13 Do you or any member of your household have... Yes No 1. A loan 1 2 2. An insurance 1 2 3. A prepaid card 1 2 4. A mobile money account 1 2 5. Bill payment wallet 1 2 6. Any other type of transaction 1 2 account E13a E13a Have you ever been offered a loan based on your remittance 1. Yes and I accepted this kind of loan receipts or on the basis of payments to your payment cards? 2. Yes, but I didn`t accept this kind of loan 3. No, nobody has ever offered any kind of loan based on my remittance receipts or payment to my payment card(s) 95. No, since I don’t have remittance receipts or payment to my payment card/I don’t have payment card E14 E14 Are there any ATMs in your area? 1. Yes E15 2. No E16 E15 How close are they to your place of residence? 1. Walking distance 2. 10 – 15 minutes by bus / car 3. More than 30 minutes by bus / car E16 E16 Have you ever used an ATM? 1. Yes 2. No E17 E17 Do you find ATMs reliable? 1. No, I don`t think they are reliable 2. Neither unreliable nor reliable 3. Yes, I find them reliable E18 E18 Are there any bill payment kiosks in your area? 1. Yes E19 2. No DK Don’t know (do not read out) E20 E19 How close are they to your place of residence? 1. Walking distance 2. 10 – 15 minutes by bus / car 3. More than 30 minutes by bus / car E20 E20 Have you or any member of your household ever used bill 1. Yes, I have payment kiosks? 2. No, I haven`t, but some members of my household have used them E21 69 96. No, none of the household members have ever used them E23 E21 What types of bills / payments have you made in bill payment 1. Utility bills kiosks? 2. Mobile phone bills [INT] Show card. Multiple answers 3. Bills related to education 4. Bills related to health services 5. Holidays, vacations, traveling bills 95. Other, specify __________________________ E22 E22 Did you receive a receipt for your payment? 1. Yes, always 2. Yes, but sometimes it happened that I didn`t receive a receipt for my payment 3. No E23 E23 Do you find bill payment kiosks reliable? 1. No, I don`t think they are reliable 2. Neither unreliable nor reliable 3. Yes, I find them reliable F1 F SENDING REMITTANCES F1 Have you sent remittances abroad in the last 12 months? 1. Yes F2 2. No Dem F2 How did you send money F2b. The most abroad? F2a. All ways of frequently used way sending remittances of sending F2a. Please specify all ways of remittances sending remittances in the last 1. Hand carried by a relative or other individual 1 1 12 months. [INT] Show card. Multiple answer 2. Through bank (without sending on the bank 2 2 F2b. Could you please indicate account) the one you used most 3. Through Post office 3 3 frequent? [INT] Show card. One answer only 4. Through a money transfer operator (via 4 4 Western Union, MoneyGram, RIA, others) 5. Into a bank account 5 5 6. Into a e-wallet 6 6 7. Into a mobile phone account (airtime) 7 7 8. Into a payment card (prepaid or debit card) 8 8 9. Bus driver (or other transport operator) 9 9 95. Other, please specify________________ 95 95 F3 F3 When sending remittances using the most frequently used 1. Hand carried by friend/relative way of sending remittances, where do you complete the 2. Post office transaction? 3. Money transfer operator location 4. Bank branch [INT] Show card. One answer only 5. Bank remittance outlet location 6. Bank Agent location 7. Mobile phone agent location 8. Online 9. An intermediary (bus driver, etc.) 95. Other, specify? ______________ F4 F4 What is the major advantage of the most frequently used way 1. It is cheaper of sending money [INT] marked on question F2b? 2. It is quick 3. It is easy to use [INT] Show card. One answer only 4. It is secure/reliable 5. It is close to my home 6. It is easily accessible for the people I send money to F5 70 7. Convenient opening hours 95. Other, please specify________________ F5 What is the major drawback of this channel? 1. It is more expensive 2. It is slow [INT] Show card. One answer only 3. It is difficult to use 4. It is less secure 5. It is far from my home 6. It is difficult for my family to receive the money 7. The opening hours are not practical 95. Other, please specify__________________ 96. No downsides F6 F6 How much have you sent in total over the past 12 months? Amount _____________ Please specify the currency as well Currency ___________ RF Refuse to answer (do not read out) F7 F7 How often do you send remittances abroad? 1. Monthly (at least once a month) 2. 4-6 times a year 3. 2-3 times a year 4. Once a year RF Refuse to answer (do not read out) F8 F8 What is the cost of sending the average amount you send 1. ______% of total amount of remittance each time? 2. ______ fixed amount regardless of the amount of remittance, please specify amount RF Refuse to answer (do not read out) F9 F9 Do these costs include... 1. Fees 2. Costs arising from the foreign exchange 3. Other costs charged to the receiver 95. Other, please specify__________________ F10 F10 Were there any problems with this channel in the past? 1. The money was lost/not received 2. The amount received was not correct [INT] Show card. Multiple answers 3. The money arrived late 4. The recipient had to pay an unexpected fee to receive the money 5. The receiver's information was not correct 95. Other, please specify__________________ F11 96. I've never had a problem F12 F11 Who did you turn to for help? 1. The police 2. The embassy/consulate [INT] Show card. Multiple answers 3. Branch manager (bank, post office) 4. Management of the money transfer operator in my country 5. Management of the money transfer operator in the destination country 6. Friends/acquaintances 95. Other, please specify___________________ 96. No one F12 F12 How long does it take for the receiver to receive the money? 1. Less than one day 2. One day 3. 2-3 days 4. 4-7 days 5. More than 7 days F13 F13 Where do you get information on choosing a money transfer 1. Word of mouth service? Please choose up to 3 answers 2. Advertising in the street and transportation 3. Advertising in newspaper, TV, radio [INT] Show card. Up to 3 answers 4. Embassy/consulate 5. Internet 6. Family in my home country F14 71 7. Association/group I am a part of 95. Other, please specify_________________ F14 Has the amount or frequency of remittances sent abroad ever 1. Yes F15 changed? 2. No Dem F15 How has the amount or frequency of remittances sent 1. The amount of remittances sent is bigger changed? 2. The amount of remittances sent is smaller [INT] Multiple responses possible 3. Sending remittances is more frequent 4. Sending remittances is less frequent F16 F16 When has this change of amount or frequency of remittances In the last _________ months sent abroad occurred? F17 F17 What was the main cause for those changes? 1. Change in incomes / possibilities of the relative abroad 2. Change in incomes / needs and circumstances of your household 3. Change in government policy regarding sending/receiving remittances 4. Found a new / better way to send 95. Other, specify_________________________ Dem Demography ALL RESPONDENTS Dem1 Gender: 1. Male 2. Female Dem2 Age: Dem4 Marital status: 1. Single, does not live with a partner 2. Married, lives with a partner 3. Divorced, and other (was married) Dem5 Education – the last 1. Unfinished primary school 5. Finished secondary school COMPLETED level of 2. Finished primary school 6. Unfinished faculty education: 3. Unfinished secondary school 7. Finished two-year college [INT] Show card Dem5. 4. Unfinished secondary school, has a craft 8. Finished faculty Dem6a Current occupation: 1. An employee in a private company, shop or a store 2. An employee in public institution (government, police, army, etc.) 3. Self-employed: Highly qualified intellectual who is self-employed, owns a company or workshop) 4. Farmer, fisherman 5. Unemployed 6. Pupil/student 7. Housewife 8. Pensioner Other:_________ Dem7a Type of household: 1. Lives alone 4. Married couple with grown-up 6. Single parent 2. Married couple without children (over 27 years of age) 7. Married couple, children live children 5. Multigenerational family separately 3. Married couple with 95. Other children Dem7 Total number of household members b Dem8a Total PERSONAL income for the LOCAL SCALES NA (Refuses to answer) previous month: [INT] Show card Dem8a Dem8 Total number of household members with regular monthly income: b Dem8c Total HOUSEHOLD income for LOCAL SCALES NA (Refuses to answer) the month of previous month: [INT] Show card Dem8c 72 7.5. Statistical tables 7.5.1 Age and gender of remittance sender Base: Total target population Total Country Tota Country l Herzegovina Bosnia and Kyrgyzstan Herzegovina Tajikistan Bosnia and Kyrgyzstan Albania Kosovo Tajikistan Serbia Albania Kosovo Serbia N 7262 944 953 1818 1043 1396 1109 Sig 0.00 94 95 181 104 139 110 N 7262 18-29 24.0 10 20 17 09 42 43 4 3 8 3 6 9 30-44 44.1 35 52 50 37 43 43 sig 0.00 45-60 27.3 41 27 29 44 15 14 Male 73.6 56 71 82 55 93 69 >60 04.7 13 02 04 10 00 01 Femal 26.4 44 29 18 45 07 31 Total 100% e Total 100% 7.5.2 Place of residence of remittance sender – Country Base: Total target population Total Country Herzegovina Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia N 7262 944 953 1818 1043 1396 1109 sig 0.00 Russia 32.8 02 00 00 97 91 Germany 17.5 21 06 41 25 00 00 Switzerland 08.1 08 00 23 08 Italy 06.7 05 35 05 03 00 Austria 06.2 20 00 06 15 United States of America 05.4 08 10 04 14 00 01 Greece 04.2 00 32 00 Sweden 02.5 04 01 04 06 France 02.5 06 02 04 02 00 United Kingdom 02.3 02 08 03 01 Slovenia 01.4 03 02 05 Canada 01.4 03 02 01 03 Norway 00.9 01 00 01 03 Australia 00.8 03 00 00 02 00 Belgium 00.8 01 01 01 01 00 Kazakhstan 00.7 00 00 01 02 Netherlands 00.7 01 00 01 02 Croatia 00.7 01 00 00 03 Denmark 00.6 00 00 03 Turkey 00.5 00 00 00 03 Korea 00.2 01 United Arab Emirates 00.2 01 00 00 00 00 Macedonia 00.2 01 01 00 Bosnia and Herzegovina 00.2 02 Spain 00.2 00 01 00 00 Finland 00.2 00 01 00 State of the European Union 00.2 00 00 00 00 Montenegro 00.2 01 00 Hungary 00.1 01 00 00 73 Total Country Herzegovina Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia N 7262 944 953 1818 1043 1396 1109 sig 0.00 Luxembourg 00.1 00 00 00 01 Czech Republic 00.1 00 00 00 Slovakia 00.1 01 Malta 00.1 01 Afghanistan 00.1 00 Tatarstan 00.1 00 Poland 00.1 00 00 00 00 Japan 00.1 00 00 00 Nigeria 00.0 00 China 00.0 00 00 Libya 00.0 00 Irlandë 00.0 00 Kuwait 00.0 00 00 Dominican Republic 00.0 00 00 South Africa 00.0 00 Ukraine 00.0 00 Africa 00.0 00 00 Tunisia 00.0 00 Bulgaria 00.0 00 Iraq 00.0 00 Angola 00.0 00 Liechtenstein 00.0 00 Cyprus 00.0 00 Israel 00.0 00 Kosovo 00.0 00 New Zealand 00.0 00 Oman 00.0 00 Yemen 00.0 00 Thailand 00.0 00 Equatorial Guinea 00.0 00 Portugal 00.0 00 Saudi Arabia 00.0 00 Different countries 00.4 00 00 01 00 RF 00.0 00 00 Total 100% 7.5.3 How often do you receive remittances from this person? Base: Total target population Total Country Herzegovina Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia N 7262 944 953 1818 1043 1396 1109 sig 0.00 Monthly (at least once a month) 25.2 17 17 19 14 41 40 4-6 times a year 23.2 18 20 16 17 34 32 2-3 times a year 31.6 35 37 41 35 17 21 Once a year 20.1 29 26 23 33 07 06 Total 100% 114 7.5.4 What is the share of remittance received from this remittance sender in total yearly household income? Base: Total target population Total Country Herzegovina Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia N 7262 944 953 1818 1043 1396 1109 sig 0.00 Up to 10 % 32.1 48 29 40 35 14 27 11 to 49 % 31.8 19 32 34 15 40 45 50 % and more 23.3 16 22 15 10 46 28 REF 12.8 17 18 11 39 Total 100% 7.5.5 How long have you been receiving remittances from abroad? Base: Total target population Total Country Herzegovina Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia N 5758 857 804 1403 822 1053 819 sig 0.00 Less than 2 years 31.7 29 19 14 16 60 56 From 2-5 years 24.8 30 28 23 22 23 25 From 6-10 years 16.9 16 22 21 21 10 11 More than 10 years 26.6 25 32 42 40 07 08 Total 100% 7.5.6 Do you receive remittances on regular basis or on special occasions/needs? Base: Total target population Total Country Herzegovina Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia N 5758 857 804 1403 822 1053 819 Occasionally (from time to time) 39.5 38 35 50 45 30 36 Regularly (in regular time intervals, same number of remittances and same/similar 36.0 27 34 31 26 48 50 amount each time) On special occasions (for holidays or some personal celebrations such as birthdays, 28.1 35 38 23 36 29 11 family celebrations) For special needs (school fees, Illness/doctor bills, death in family, marriage) 17.8 10 27 16 12 28 13 115 7.5.7 Please specify all ways of receiving remittances in the last 12 months Multiple answers; Base: Total target population Total Country Herzegovina Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia N 5758 857 804 1403 822 1053 819 Through a money transfer operator 46.8 45 65 52 32 34 52 Hand carried by the person who sends (or brings) remittances 32.9 33 44 55 56 02 01 Through bank (without sending to the bank account) 23.2 07 05 07 07 65 48 Into a bank account 13.8 23 10 12 21 14 04 Hand carried by a relative or other individual 11.1 14 17 14 14 05 01 Through Post office 02.9 09 03 01 02 04 00 Bus driver (or other transport operator) 02.8 08 03 03 03 00 Into a mobile phone account (airtime) 00.3 01 00 01 00 Into a payment card (prepaid or debit card) 00.3 01 00 00 00 Into a e-wallet 00.2 01 00 00 00 00 00 Other 00.1 00 00 7.5.8 Could you please indicate the one you use the most frequently? Base: Total target population Total Country Herzegovin Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia a N 5758 857 804 1403 822 1053 819 sig 0.00 Through a money transfer operator 40.8 40 57 45 28 26 51 Hand carried by the person who sends (or brings) remittances 22.8 22 28 38 44 01 00 Through bank (without sending to the bank account) 21.0 05 02 06 06 61 47 Into a bank account 07.5 13 02 05 12 11 01 Hand carried by a relative or other individual 04.9 07 09 06 07 01 00 Bus driver (or other transport operator) 01.3 05 02 01 01 Through Post office 01.3 05 01 00 01 00 00 Into a payment card (prepaid or debit card) 00.2 01 00 00 Into a mobile phone account (airtime) 00.1 00 00 Into a e-wallet 00.1 00 00 Other 00.1 00 00 Total 100% 116 7.5.9 Overall, to what extent are you satisfied with the method of remittance transfer that you use the most frequently? Base: Total target population Total Country Herzegovina Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia N 5758 857 804 1403 822 1053 819 Completely unsatisfied 01.7 01 02 03 02 01 00 Mostly unsatisfied 01.4 02 02 02 01 00 01 Sum - 03.1 03 04 05 03 01 01 Sum + 96.9 97 96 95 97 99 99 Mostly satisfied 30.9 26 31 36 29 26 36 Completely satisfied 66.1 71 66 58 68 73 63 Total 100% Mean 3.6 3.7 3.6 3.5 3.6 3.7 3.6 7.5.10 What is the most frequent location where you withdraw your remittance? Base: Total target population Total Country Herzegovina Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia N 5758 857 804 1403 822 1053 819 sig 0.00 Money Transfer Operator location 32.4 18 55 46 19 17 35 Home delivery via the person who sends (or brings) remittance 29.1 34 39 44 52 02 01 Bank branch 28.1 15 03 07 15 76 55 Bank remittance outlet location 04.9 12 00 08 04 08 Post office 03.3 17 01 00 03 00 00 ATM 01.6 02 02 02 02 01 00 Bank Agent location 00.4 01 00 00 00 00 Postman home delivery 00.2 01 00 00 Mobile phone agent location 00.1 00 Other 00.0 00 Total 100% 7.5.11 Starting from the moment of sending, how long it usually takes you to receive the cash remittance? Base: Total target population Total Country Herzegovina Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia N 5758 857 804 1403 822 1053 819 sig 0.00 Less than one day 54.6 51 54 49 58 64 53 One day 28.4 29 24 24 23 30 43 2-3 days 14.2 17 18 23 15 06 04 4-7 days 02.1 03 04 03 04 00 00 More than 7 days 00.7 01 01 01 01 00 Total 100% 117 7.5.12 What purpose do you use the received remittances from abroad for? - TOP RANK Base: Total target population Total Country Herzegovina Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia N 5758 857 804 1403 822 1053 819 FMCG, HH product, appliances and goods (Food and beverages, tobacco, Clothes 61.9 57 56 66 60 68 61 and footwear, physical goods) Health 08.3 08 10 06 13 10 05 Education 05.6 05 05 07 06 05 05 Investments: Buying a flat or a house, construction, renovation and major repairs at 04.9 05 03 04 02 05 13 home or apartment Rent/ housing costs/ debt payment 04.2 09 02 02 04 05 04 Emergencies (e.g. illness, accident, disaster) 03.9 04 07 06 03 00 03 Savings 03.4 02 06 03 06 02 03 Holidays, vacations, traveling 02.8 05 06 03 03 00 01 Investing in business activities: Agricultural production, Entrepreneurial activity 01.8 03 01 01 02 01 04 Transport equipment 01.8 01 01 02 02 04 00 7.5.13 Does your household have any other sources of income, beside remittances – Answer YES Base: Total target population Total Country Herzegovina Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia N 5758 857 804 1403 822 1053 819 Pension 40.1 36 39 39 43 39 46 Private company (entity) salary 27.9 42 35 36 27 10 17 Government salary 23.9 25 16 29 15 29 24 Agriculture 20.5 11 11 14 11 32 44 Own business / vendor / merchant / etc. 09.7 05 14 11 02 13 13 Government benefit or other social benefit 04.3 03 04 05 05 04 05 Estate renting 02.1 04 04 03 00 01 01 7.5.14 Do you have access to any bank account? Multiple answers; Base: Total target population Total Country Herzegovina Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia N 5758 857 804 1403 822 1053 819 Yes, I have my own bank account 43.9 78 44 54 63 15 10 Yes, I have access to someone else’s bank account 02.1 06 02 02 02 01 00 No 54.7 20 54 45 36 84 90 118 7.5.15 Do you have a payment card? Base: Total target population Total Country Herzegovina Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia N 5758 857 804 1403 822 1053 819 sig 0.00 Yes 35.3 61 34 33 34 28 24 No 64.7 39 66 67 66 72 76 Total 100% 7.5.16 Do you or any member of your household have – Answer YES Base: Total target population Total Country Herzegovina Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia N 5758 857 804 1403 822 1053 819 A loan 20.4 28 07 21 20 14 34 A prepaid card 14.0 23 14 16 08 13 08 An insurance 13.0 24 20 11 17 08 01 Any other type of transaction account 02.8 04 02 04 05 01 00 Bill payment wallet 02.2 02 07 03 01 00 01 A mobile money account 02.2 01 06 02 01 02 02 7.5.17 Are there any ATMs in your area? Base: Total target population Total Country Herzegovina Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia N 5758 857 804 1403 822 1053 819 sig 0.00 Yes 51.3 70 59 33 63 61 32 No 48.7 30 41 67 37 39 68 Total 100% 119 7.5.18 Are there any bill payment kiosks in your area? Base: Total target population Total Country Herzegovina Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia N 5758 857 804 1403 822 1053 819 sig 0.00 Yes 28.1 05 36 16 02 69 38 No 63.2 83 50 74 85 29 59 Don’t know 08.8 12 14 10 13 02 03 Total 100% 7.5.19 Have you sent remittances abroad in the last 12 months? Base: Total target population Total Country Herzegovina Bosnia and Kyrgyzstan Tajikistan Albania Kosovo Serbia N 5758 857 804 1403 822 1053 819 sig 0.00 Yes 002.4 004 000 001 003 001 004 No 097.6 096 100 099 097 099 096 Total 100% 120 7.6. Origin of remittances 7.6.1 Number of remittance senders Figure 7.6.1 Number of remittance senders Can you please list all persons from whom you or any member of your household received remittances from abroad in the last 12 months? From how many persons? Base: Total target population Total Serbia Albania Kosovo Bosnia and Herzegovina Tajikistan Kyrgyzstan 100 91 90 85 80 80 80 80 73 74 70 60 50 40 30 22 19 20 15 15 11 14 7 10 3 1 3 4 3 4 5 1 0 0 2 2 1 2 0 From 1 person From 2 persons From 3 persons From 4-5 persons 7.6.2 Reasons for using the most preferred method of money transfer Figure 7.6.2 Reasons for using the most preferred method of money transfer What are the main reasons for using most frequently … as the method of remittance transfer? Multiple answers; Base: Total target population 0 10 20 30 40 50 60 70 80 Reliability / safety Total Serbia Efficiency / fast transfer Albania Lowest cost of the money transfer Kosovo Bosnia and Closest access (pick up) points Herzegovina Tajikistan The only available possibility Kyrgyzstan Other 121 7.7. Duration and frequency of remittances 7.7.1 Change in frequency and value of remittances Figure 7.7.1a Change in frequency and value of remittances Has the amount or frequency of received remittances from abroad changed in the last 12 months? Base: Total target population 100% 90% 80% 50 70% 57 63 No 68 65 60% 86 88 50% 40% 30% 50 20% 43 37 Yes 32 35 10% 14 12 0% Total Serbia Albania Kosovo Bosnia and Tajikistan Kyrgyzstan Herzegovina Figure 7.7.1b Change in frequency and value of remittances How did the amount or frequency of received remittances change over the last 12 months? Multiple answers; Base: Those who stated that amount or frequency of received remittances from abroad changed in certain period of time (32% of target population) Total Serbia Albania Kosovo Bosnia and Herzegovina Tajikistan Kyrgyzstan 87 90 80 75 70 63 64 60 51 48 46 43 50 40 31 30 29 27 25 24 30 23 23 18 17 19 17 15 20 14 11 9 10 8 10 10 2 0 The amount of received Received remittances are The amount of received Received remittances are remittances is lower less frequent remittances is higher more frequent 122 7.8. Remittance providers and channels satisfaction 7.8.1 Fees as a percentage of total remittances amount Figure 7.8.1 Fees as a percentage of total remittances amount Did you have to pay any kind of commission to receive the remittance? Base: Those who pay any kind of commission in % of remittance (5% of target population) Percentage of the total amount of remittance Albania 9,5% Kosovo 8,7% Serbia 5,7% Bosnia and Herzegovina 4,3% Kyrgyzstan 9,7% Tajikistan 1,7% Total 7,5% 123 7.8.2 Currencies in which remittances are received More than half of remittances in the ECA countries are sent in euros . In Kosovo, 94% of remittances are received in euro, since it is the official currency for all payment transfers. The euro is also the dominant currency for remittances for households in Bosnia and Herzegovina (55%), Serbia (74%), and Albania (75%). The Central Asian countries are an exception, as 67% of households in Kyrgyzstan and 95% of households in Tajikistan do so in their domestic currencies (Figure 7.8.2.1). Although remittance-receivers are reluctant to disclose the amount of money they receive from abroad, estimates can be made as to the money amount received by the households both on an annual and individual transaction (average value) basis. These estimations are outlined in Tables 8.8.2.2a and 8.8.2.2b. Figure 7.8.2.1: Currency of remittances Could you tell me the currency in which you are receiving remittance from abroad? Base: Total target population 0 10 20 30 40 50 60 70 80 90 100 EUR – Euro Total Serbia TJS – Somoni Albania KGS – Som Kosovo USD - United States dollar Bosnia and Herzegovina BAM - Bosnia and Herzegovina convertible mark Tajikistan RSD - Dinar Kyrgyzstan ALL - Lek Figure 7.8.2.2a: Average amounts of remittances per year and per transaction – converted to USD Could you tell me the total amount you received in the past 12 months using the following scale? Could you tell me the usual (average) amount of remittances that you receive on one occasion from abroad using the following scale; Bosnia and Total Albania Kosovo Serbia Kyrgyzstan Tajikistan Herzegovina USD - United States dollar18 Per year 1668 2350 1858 1277 885 1450 1843 Per transaction 353 499 560 299 180 228 224 18 The respondents stated the amounts in currencies in which they received remittances. The conversion to USD was done for comparison purposes. 124 Figure 7.7.2.2b: Average amounts of remittances per year and per transaction – in original currencies Could you tell me the total amount you received in the past 12 months using the following scale? Could you tell me the usual (average) amount of remittances that you receive on one occasion from abroad using the following scale; Bosnia and Total Albania Kosovo Serbia Kyrgyzstan Tajikistan Herzegovina RUB - Russian Ruble Per year 71946 80000 76391 40238 Per transaction 12004 20000 12238 10102 ALL – Lek Per year 1576989 1576989 Per transaction 196600 196600 RSD - Dinar Per year 153498 153498 Per transaction 23610 23610 BAM - Bosnia and Herzegovina convertible mark Per year 1173 1173 Per transaction 287 287 TJS – Somoni Per year 14566 14566 Per transaction 1709 1709 KGS – Som Per year 88969 88969 Per transaction 13287 13287 EUR – Euro Per year 1466 1290 1739 1173 878 9684 5609 Per transaction 412 373 528 280 173 2443 776 USD - United States dollar Per year 2184 1351 4211 1786 1174 3888 2886 Per transaction 520 498 968 521 233 641 656 The currency in which remittances are received differ considerably between countries in Central Asia and Eastern Europe. In Serbia, Albania, and Bosnia and Herzegovina, remittances are most likely to be received in a foreign currency, while remittances are mainly received in the local currency in Tajikistan and Kyrgyzstan (Figure 7.8.2.3). Kosovo remains an exception, as the euro is the official currency for all payments. Among respondents who receive remittances in local currency, the majority of respondents in Kyrgyzstan and Albania have the options to receive remittances in foreign currency, whereas a significantly smaller number of respondents has this option in Serbia, Kosovo, Tajikistan, and Bosnia and Herzegovina (Figure 7.8.2.4). For respondents who have the option to receive remittances in foreign currency, beneficiaries in Albania, Kosovo, and Tajikistan mainly exchange currencies per the exchange rate of their respective national banks, while the exchange rate depends on the local remittance providers in Serbia, Bosnia and Herzegovina, and Kyrgyzstan. 125 Figure 7.8.2.3: Currency of remittance Which currency do you receive remittances? Base: Total target population Local currency Foreign currency 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total 59 41 Serbia 17 83 Albania 18 82 Kosovo 87 13 Bosnia and Herzegovina 33 67 Tajikistan 95 5 Kyrgyzstan 76 24 Figure 7.8.2.4: Possibility of receiving remittances in foreign currencies If you receive remittances in local currency, do you have an option to receive the funds in foreign currency? Base: Those who receive remittances in local currency (59% of target population) Total Serbia Albania Kosovo Bosnia and Herzegovina Tajikistan Kyrgyzstan 79 80 70 60 54 45 47 50 42 38 36 37 40 32 28 30 30 22 21 20 19 18 20 17 19 20 13 15 15 10 8 6 10 4 3 4 0 Yes No, but I don`t need that No, but I would like to have Don’t know option since I am using an option to receive funds funds in local currency in foreign currency Most households that receive remittances in foreign currency only exchange the funds to their domestic currencies when necessary. 75% of remittance beneficiaries in Serbia and 55% in Albania hold their money in foreign currency until necessary. In Central Asia, the same applies to 84% of remittance receivers in Tajikistan and 60% in Kyrgyzstan. Bosnia and Herzegovina is the exception to this finding, as more than half of respondent households exchange the full amount of their remittances for local currency upon receipt. 126 Figure 7.8.2.5: Keeping remittances received in foreign currency After receiving funds in foreign currency, you are...Base: Those who receive the funds in foreign currency (41% of target population) Holding funds in foreign currency and using them in foreign currency Holding funds in foreign currency and convert them in domestic currency when I need to use them Convert all foreign currency in domestic currency upon receipt 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total 7 58 36 Serbia 5 75 20 Albania 1 55 44 Kosovo 52 30 18 Bosnia and Herzegovina 3 44 54 Tajikistan 4 84 12 Kyrgyzstan 3 60 37 7.8.3 Negative aspects of money transfer through banks Figure 7.8.3 Negative aspects of money transfer through banks Have you experienced any negative aspects of the remittances transfer through a bank? Multiple answers; Base: Those who used banks to receive remittances in the past (17% of target population) Total Serbia Albania Kosovo Bosnia and Herzegovina Tajikistan Kyrgyzstan 99 100 90 76 78 77 80 71 71 70 60 50 41 36 40 30 24 24 172018 2016 20 10 1 5 5 5 7 2 4 6 5 1 2 3 3 3 2 4 1 1 2 2 2 0 High transfer costs Unexpected time Unexpected Unexpected Loss of the money No, I have never delay in money complications in transfer costs experienced transfer transfer procedures negative aspects 127 7.8.4 Usage of banks or other financial institutions in the money transfer process Figure 7.8.4 Usage of banks or other financial institutions in the money transfer process Have you and your relatives/friends abroad ever used banks for remittances transfer? Base: Those who don’t receive remittances through banks (72% of target population) 100% 90% 80% 35 70% 57 No 72 73 77 76 60% 80 50% 40% 30% 65 20% 43 Yes 28 27 23 24 10% 20 0% Total Serbia Albania Kosovo Bosnia and Tajikistan Kyrgyzstan Herzegovina 7.8.5 Influencing factors for converting to use of bank services from current money transfer method Figure 7.8.5 Influencing factors for converting to use of bank services from current money transfer method If you or your relative were not using banks for remittances at all, what would influence you and your relative the most to start using them (more frequent) for remittance transfer? Multiple answers; Base: Those who used banks to receive remittances in the past (51% of target population) 0 10 20 30 40 50 Lower costs of the money transfer Total Less complicated procedures for remittance receiving/sending Serbia Faster money transfer Albania More transparent costs of the money transfer Kosovo More security and safety in money transfer Bosnia and (guaranties) Herzegovina Bank offices availability (more bank offices Tajikistan nearby) Kyrgyzstan More adequate working hours of the bank offices Nothing, I would not consider using bank for remittances transfer 128 7.8.6 Financial institutions alternative to banks Figure 7.8.6 Financial institutions alternative to banks If you or your relative abroad are not willing to use banks for remittances transfer, which of other, if any, financial institutions you would consider as an alternative? Multiple answers; Base: Those who would not consider using bank for remittances transfer (17% of target population) Total Serbia Albania Kosovo Bosnia and Herzegovina Tajikistan Kyrgyzstan 100 100 91 86 90 80 72 74 70 66 59 60 50 40 28 30 20 19 18 15 20 13 7 8 9 10 1 4 4 3 2 0 0 0 Post office Currency exchange office Insurance company None 7.9. Usage of and access to remittances withdrawal locations 7.9.1 Availability of remittance withdrawal locations during work hours Figure 7.9.1 Availability of remittance withdrawal locations during work hours Has the location ever been closed when you arrived there (during its expected hours of operation)? Base: Total target population 100% 90% No 80% 70% 60% 92 89 88 94 90 Yes, 1-3 50% 95 95 times 40% 30% 20% Yes, more than 3 10% 7 10 10 8 times 1 4 1 1 2 5 1 1 4 1 0% Total Serbia Albania Kosovo Bosnia and Tajikistan Kyrgyzstan Herzegovina 129 7.10. Respondents’ general usage of bank products unrelated to remittances 7.10.1 Ownership and usage of bank accounts Recipients of remittances in the region of Eastern Europe and Central Asia differ significantly regarding the use of bank accounts and other banking products. Recipients of remittances in Tajikistan and Kyrgyzstan use banking products less when compared with recipients in the countries of Eastern Europe. Only 16% of receivers of remittances in Tajikistan and 10% in Kyrgyzstan possess their own bank accounts or have access to one. There is a somewhat higher percentage of bank account owners among remittance receivers in Albania (44%), Kosovo (54%), and Bosnia and Herzegovina (63%), while percentage is the highest in Serbia, where banking products are used by 78% of the population of remittance beneficiaries. Those who have access to a bank account usually only have one account, while 14% have access to two or more accounts. Figure 7.10.1.1: Possession of bank accounts Do you have access to any bank account? Multiple answers; Base: Total target population 0 10 20 30 40 50 60 70 80 90 100 44 Total 78 44 Yes, I have my own bank account 54 Serbia 63 15 Albania 10 2 Kosovo 6 Yes, I have access to someone else’s bank 2 2 Bosnia and account 2 Herzegovina 1 0 Tajikistan 55 20 Kyrgyzstan 54 No 45 36 84 90 Bank accounts are usually used for management of income and expenses. A large majority (78%) of remittance receivers who have access to a bank account use it for general income or spending management. One third of this group use bank accounts to receive remittances, while 27% use bank accounts mainly for saving. Observed across countries, a larger number of bank account users in Eastern Europe mainly use them for general income or spending management as compared to their counterparts in Central Asia (Figure 7.10.1.2). 130 Figure 7.10.1.2: Usage of bank accounts - % of answer YES What do you use these accounts for? – Answer YES; Base: Those who have access to some account (45% of target population) Total Serbia Albania Kosovo Bosnia and Herzegovina Tajikistan Kyrgyzstan 90 83 85 78 79 79 80 75 70 60 60 50 42 37 38 35 40 33 33 32 26 27 28 27 23 30 20 21 15 16 17 13 20 6 4 4 10 0 General income / spending’s Receiving of remittances Savings Loans and credits management Remittance beneficiaries who do not have access to a bank account cite lack of funds to open and/or maintain the account. Across all countries surveyed, nearly half (47%) of all respondent households who do not have bank accounts report this reason. Other reasons include being able to manage finances without a bank account for 33%, while 8% consider banking procedures to be too complicated or confusing. Non-users of bank accounts in the Central Asian countries are considerably more likely to cite lack of funds as an obstacle to using a bank account. On the other hand, lack of funds are less of a factor for non-users of bank accounts in Eastern European countries, who are somewhat more likely to consider bank accounts unnecessary for finance management. Figure 7.10.1.3: Main reason for not having bank account And what is the main reason for why you don`t have a bank account? Base: Those who don’t have access to some account (55% of target population) 0 10 20 30 40 50 60 70 47 Total 38 No money to open bank account / pay for 46 28 Serbia maintenance of the account 30 67 Albania 51 33 Kosovo 45 42 Can manage own finances without bank account 47 Bosnia and 53 Herzegovina 16 25 Tajikistan 8 Kyrgyzstan 3 Bank processes are too complicated and confusing 8 11 for me 5 6 12 131 7.10.2 Ownership and usage of payment cards More than a third (35%) of remittance receivers in the six ECA countries own a payment card, with their possession and usage differing considerably across countries. The usage of payments cards is highest in Serbia, where 61% of remittance beneficiaries use a payment card. Payment card usage is approximately 34% in the remaining Eastern European countries. Usage is slightly lower in Central Asia, with an average of 26%. Across all countries surveyed, population groups aged 18-29 and those with higher levels of education and/or employed are all more likely to possess a payment card. Figure 7.10.2.1: Ownership of payment cards Do you have a payment card? Base: Total target population 100% 90% 80% 39 70% No 65 66 67 66 72 76 60% 50% 40% 30% 61 20% 35 Yes 34 33 34 28 10% 24 0% Total Serbia Albania Kosovo Bosnia and Tajikistan Kyrgyzstan Herzegovina Payment cards are predominantly used for withdrawing cash. 95% of respondents use payment cards for this purpose, while one third use them for payment at POS. Making payments with payment cards is widespread among users in Serbia (64%), Bosnia and Herzegovina (49%), and Kosovo (42%), whereas more limited in Albania, Kyrgyzstan, and Tajikistan. In addition, although payments cards are rarely used for shopping online, this type of usage is more widespread in Albania and Kosovo. Figure 7.10.2.2: Usage of payment cards For what purposes are you using your payment card? Multiple answers; Base: Those who have payment card (35% of target population) Total Serbia Albania Kosovo Bosnia and Herzegovina Tajikistan Kyrgyzstan 100 95 92 97 97 91 96 99 90 80 70 64 60 49 50 42 40 35 30 20 15 15 7 9 9 10 3 4 4 1 1 0 ATM withdrawal POS payments Internet purchases 132 Withdrawing the entire sum on the payment card once it has been loaded is more widespread in Tajikistan and Kyrgyzstan. Across all countries, 42% of payment card users leave some amount on the card, while 31% always withdraw the entire sum. The majority of payment card owners within each country report that they use them relatively frequently (Figure 7.10.2.3). Figure 7.10.2.3a: Usage of payment cards When any kind of funds are deposited on your payment card, do you cash the card out completely or you leave some of the funds on the card? Base: Those who have payment card (35% of target population) 100% 14 14 Sometimes I cash the 90% card out completely 27 31 32 28 80% 36 and sometimes I 70% leave some of the 17 funds on the card 60% 23 31 13 59 59 I always cash the card 27 50% out completely 40% 30% 55 46 50 20% 42 40 27 27 I always leave some 10% of the funds on the 0% card Total Serbia Albania Kosovo Bosnia and Tajikistan Kyrgyzstan Herzegovina Figure 7.10.2.3b: Usage of payment cards - frequency How often do you use your payment card? Base: Those who have payment card (35% of target population) Every day Few times a week Few times a month 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total 3 17 58 Serbia 6 22 62 Albania 1 22 48 Kosovo 2 17 58 Bosnia and Herzegovina 4 26 54 Tajikistan 1 4 48 Kyrgyzstan 5 77 Being able to manage finances on their own, lacking funds to acquire a bank card and/or pay for maintenance, and not owning a bank account to link a card are reported in nearly equal numbers for those who do not own a payment card. However, some differences exist between countries in Central Asia and Eastern Europe. For instance, the lack of adequate funds to open a bank debit card and/or pay for maintenance is cited more frequently in Kyrgyzstan and Tajikistan than in Eastern European countries as the main reason for not owning a card. 133 Figure 7.10.2.4: Reasons for not having payment cards Why don’t you have a payment card? Multiple answers; Base: Those who don’t have payment card (65% of target population) 0 10 20 30 40 50 Total Can manage own finances without bank account Serbia No money to open bank debit card / pay for maintenance Albania Don’t have bank account Kosovo Bosnia and No bank available near home or work Herzegovina Tajikistan Do not trust the banks Kyrgyzstan Other reason 7.10.3 Usage of other banking products Other banking products are not used extensively among remittance receivers in the ECA region. Loans are the most used banking product after payment cards in all ECA countries, with the highest usage of 34% in Kyrgyzstan and the lowest usage of 7% in Albania. Prepaid cards are the second most used banking product, followed by insurance products. Figure 7.10.3.1: Usage of other bank products - % of answer YES Do you or any member of your household have – Answer YES; Base: Total target population Total Serbia Albania Kosovo Bosnia and Herzegovina Tajikistan Kyrgyzstan 40 34 35 30 28 23 24 25 20 2120 20 20 16 17 14 14 14 13 13 15 11 10 7 8 8 8 7 5 6 5 3 4 2 4 2 2 3 2 1 2 1 2 2 1 1 0 1 0 1 0 A loan A prepaid card An insurance Any other type of Bill payment wallet A mobile money transaction account account Lending by banks to remittance receivers in the ECA region appears to be very low . Less than one fifth of those interviewed have been offered some form of loan product by a bank. Loans were more likely to be offered to receivers in Kosovo (39%) and Albania (24%), while the percentage of remittance receivers who 134 have been offered a loan product is a lot lower in Serbia, with no remittance receivers in Tajikistan having been offered this product. Figure 7.10.3.2: Offering a loan based on payments on remittance Have you ever been offered a loan based on your remittance receipts or on the basis of payments to your payment cards? Base: Those who have payment cards, remittance receipts or payment (77% of total population) 100% 4 2 1 3 10 8 8 Yes and I accepted 90% 15 23 17 11 this kind of loan 80% 31 70% 60% Yes, but I didn`t 50% 100 accept this kind of 88 loan 40% 81 76 80 80 30% 61 20% No, nobody has ever offered any kind of 10% loan based on my 0% rem Total Serbia Albania Kosovo Bosnia and Tajikistan Kyrgyzstan Herzegovina 7.11. Accessibility and usage of ATMs and bill payment kiosks unrelated to remittances Slightly over half of all remittance receivers have access to an ATM available near their homes . A large majority of remittance beneficiaries in Serbia, Bosnia and Herzegovina, Albania, and Tajikistan have access to an ATM near their homes. By contrast, only one third of remittance receivers in Kyrgyzstan and Kosovo have access to a nearby ATM. In all the observed countries, ATMs are more prevalent in urban areas, as well as in regions of the capitals. ATMs, where available, are in walking distance for 64% of all respondents or a 10 to 15-minute car or bus ride for 28% of all respondents. ATMs are usually located within walking distance from users’ homes in Serbia and Albania, while a higher percentage access ATMs by car or bus in other surveyed countries. 135 Figure 7.11.1: Location of ATMs How close are they to your place of residence? Base: Those who has ATM in his area (51% of target population) Walking distance 10 – 15 minutes by bus / car More than 30 minutes by bus / car 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total 64 28 8 Serbia 76 20 4 Albania 84 16 0 Kosovo 56 40 4 Bosnia and Herzegovina 58 36 5 Tajikistan 52 27 22 Kyrgyzstan 53 33 14 Usage of ATMs are higher in Eastern European countries surveyed than in the Central Asian countries. ATMs are used most in Serbia and Kosovo, 73% and 62% respectively, followed by more than half of respondents having used an ATM in Bosnia and Herzegovina and Albania. The share of households that have used ATMs is a lot lower in Tajikistan and Kyrgyzstan, with an average of 36% of remittance receivers having used them (Figure 7.11.2). Regardless of ATM usage, ATMs are perceived to be reliable. The survey indicates that 64% of all remittance beneficiaries find ATMs to be reliable, as opposed to 6% of respondents who do not find them reliable (Figure 7.11.3). Figure 7.11.2: Usage of ATMs Have you ever used an ATM? Base: Total target population 100% 90% 27 80% 38 42 47 45 No 70% 65 63 60% 50% 40% 73 30% 62 58 54 55 Yes 20% 35 37 10% 0% Total Serbia Albania Kosovo Bosnia and Tajikistan Kyrgyzstan Herzegovina 136 Figure 7.11.3: Reliability of ATMs Do you find ATMs reliable? Base: Total target population 100% 90% Yes, I find them 80% reliable 47 70% 64 61 64 60 74 70 60% Neither unreliable 50% nor reliable 40% 30% 44 29 35 20% 30 31 21 No, I don`t think 22 they are reliable 10% 6 10 5 8 5 9 0% 3 Total Serbia Albania Kosovo Bosnia and Tajikistan Kyrgyzstan Herzegovina A very small percentage of respondent households have access to a bill payment kiosk near their homes. Whereas merely 28% of remittance receivers report availability of a bill payment kiosk in the vicinity of their homes, Tajikistan is an exception with 69% of its remittance beneficiaries stating that a bill payment kiosk is available nearby (Figure 7.11.4). In both Tajikistan and Kyrgyzstan, bill payment kiosks are more prevalent in urban areas, as well as in the regions of the capitals. 67% of all respondents report that bill payment kiosks are within a relatively short walking distance, while a 10 to 15-minute car or bus ride is necessary to access them for 25% of respondents (Figure 7.11.5). Figure 7.11.4: Availability of bill payment kiosks Are there any bill payment kiosks in your area? Base: Total target population Yes No Don’t know 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total 28 63 9 Serbia 5 83 12 Albania 36 50 14 Kosovo 16 74 10 Bosnia and Herzegovina 2 85 13 Tajikistan 69 29 2 Kyrgyzstan 38 59 3 137 Figure 7.11.5: Position of bill payment kiosks How close are they to your place of residence? Base: Those who have bill payment kiosks in their area (28% of target population) 100% 3 1 4 8 12 11 90% 14 17 More than 30 80% 25 42 minutes by bus / car 40 24 29 70% 60% 50% 10 – 15 minutes by 85 bus / car 40% 80 30% 66 64 60 56 58 20% Walking distance 10% 0% Total Serbia Albania Kosovo Bosnia and Tajikistan Kyrgyzstan Herzegovina Irrespective of the distance of the nearest bill payment kiosk, they are rarely used. About two thirds of remittance receivers in ECA countries state that they or their household members have never used these devices. Across individual countries, usage of bill payment kiosks is much more extensive in Albania and Kyrgyzstan, where 44% and 52% of households have used them, respectively. Respondents in Tajikistan use these devices the most, with 82% of households having ever used them. In Albania and Kosovo, bill payment kiosks are usually used for paying utility bills, while they are used primarily for paying mobile phone bills in Tajikistan and Kyrgyzstan. Figure 7.11.6: Usage of bill payment kiosks Have you or any member of your household ever used bill payment kiosks? Base: Total target population Yes, I have No, I haven`t, but some members of my household have used them No, none of the household members have ever used them 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total 27 8 65 Serbia 21 98 Albania 37 7 56 Kosovo 16 6 77 Bosnia and Herzegovina 31 96 Tajikistan 64 18 18 Kyrgyzstan 37 15 48 138 Figure 7.11.7: Usage of bill payment kiosks What types of bills / payments have you made in bill payment kiosks? Multiple answers; Base: Those who used bill payment kiosks or their HH members did (35% of target population) Total Serbia Albania Kosovo Bosnia and Herzegovina Tajikistan Kyrgyzstan 96 98 100 100 90 84 86 80 70 70 60 54 50 39 37 40 30 22 23 23 20 17 17 18 14 15 20 12 7 10 4 3 2 5 3 4 3 1 1 1 1 4 2 1 0 Mobile phone bills Utility bills Bills related to Bills related to health Holidays, vacations, education services traveling bills After payment, a receipt is usually issued. However, unlike the receivers in other countries who claim that they do get a receipt after each or at least most of payments, more than half of users of these devices say that they have never been issued a receipt of payment. Figure 7.11.8: Receiving receipt for payment Did you receive a receipt for your payment? Base: Those who used bill payment kiosks or their HH members did (35% of target population) Yes, always Yes, but sometimes it happened that I didn`t receive a receipt No 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total 58 17 25 Serbia 84 16 Albania 84 13 3 Kosovo 85 10 5 Bosnia and Herzegovina 86 2 12 Tajikistan 20 29 51 Kyrgyzstan 90 5 6 Bill payment kiosks are most likely to be considered reliable in places where they are rather common. 73% of the population of remittance receivers in Tajikistan and 69% of the same population in Kyrgyzstan consider them reliable, while they are viewed as less reliable in other countries where they are less prevalent. 139 Figure 7.11.9: Reliability of bill payment kiosks Do you find bill payment kiosks reliable? Base: Total target population 100% 90% 16 23 Yes, I find them 80% 43 reliable 48 70% 54 73 69 60% Neither unreliable 50% 63 74 nor reliable 40% 46 30% 44 38 20% 24 No, I don`t think 24 10% they are reliable 15 11 10 8.7 8 4 8 0% Total Serbia Albania Kosovo Bosnia and Tajikistan Kyrgyzstan Herzegovina 7.12. Other income sources of remittance receivers Pensions, salaries from the private and government sectors, and agriculture are other income sources for 40% of remittance-receiving households. Pensions account for 40% of income, while private sector and government sector salaries are income sources for 28% and 24% of households, respectively. Agriculture is another source of income for 20% of households. More households in Serbia, Albania, and Kosovo earn private sector salaries, whereas government salaries are more represented in Kosovo and Tajikistan. Kyrgyzstan and Tajikistan are also characterized by a somewhat bigger share of income from agricultural activities. Figure 7.12.1: Sources of income - % of household with other sources of income Does your household have any other sources of income, beside remittances; Base: Total target population Total Serbia Albania Kosovo Bosnia and Herzegovina Tajikistan Kyrgyzstan 50 45 40 35 30 25 20 15 10 5 0 Pension Private Government Agriculture Own business / Government Estate renting company salary vendor / benefit or other (entity) salary merchant / etc. social benefit 140 How income is received is driven by the income source and/or the country in question. Those receiving a government salary represent one fifth of households in Serbia, and these funds are received into a bank account. This method of receipt is also reported by half of the households in Albania, three fourths of the households in Kosovo, and two thirds of the households in Bosnia. In contrast, government salaries paid in Tajikistan and Kyrgyzstan are paid onto a payment card (67% and 52%, respectively), as well as in cash (36% of households in Tajikistan and 44% of households in Kyrgyzstan). Figure 7.12.2: Government salary Government salary - In what form do you receive that income? Multiple answers; Base: Those who receive government salary (24% of target population) 0 10 20 30 40 50 60 70 80 Total Into bank account Serbia Albania Payment card Kosovo Bosnia and In cash Herzegovina Tajikistan Kyrgyzstan E-money The practice of private sector salary payment differs across ECA countries surveyed. Salary payment from the private sector is dominantly paid in cash in the Central Asian countries, as well as in Albania (62%) and Kosovo (58%). By contrast, private sector salaries are paid in cash to only one third of households in Serbia and Bosnia and Herzegovina, and instead paid into the recipient’s bank account (71% of households in Serbia and 58% of households in Bosnia and Herzegovina). 141 Figure 7.12.3: Private company (entity) salary Private company (entity) salary - In what form do you receive that income? Multiple answers; Base: Those who receive Private company salary (28% of target population) 0 10 20 30 40 50 60 70 80 90 100 Total In cash Serbia Albania Into bank account Kosovo Bosnia and Herzegovina Tajikistan Payment card Kyrgyzstan E-money The practice of pension payment varies even more across the ECA countries. For example, pension is dominantly paid in cash in Albania and Kyrgyzstan, whereas it is paid into bank accounts in Serbia and Kosovo. In Tajikistan, pensions paid onto a payment card is most common (63%). Other sources of household income, such as agriculture, renting of real estate, own business or firm, and different types of social welfare, are dominantly paid in cash across all countries, with the exception of Serbia. Figure 7.12.4: Pension Pension - In what form do you receive that income? Multiple answers; Base: Those who receive Pension (40% of target population) 0 10 20 30 40 50 60 70 80 90 100 Total In cash Serbia Albania Into bank account Kosovo Bosnia and Herzegovina Payment card Tajikistan Kyrgyzstan E-money 142 Other sources of household income (income from agriculture, renting of real estate, own business /firm, different types of social welfare) are dominantly paid in these countries in the form of cash. The exception is Serbia, in case of income from an owned business, a higher percentage of payments are made to a bank account when compared with other countries. In households which receive remittances the habit of saving money for large shopping, emergencies and special occasions is less developed: less than one third of the households claim to have some money which is set aside for these purposes. Practice of saving for special occasions is somewhat more widespread among Albanian households, where 41% of them claim to set aside some money for saving purposes. Despite the fact that saving money is not a widespread practice among remittance receiving households, those that have some money set aside do so occasionally, when their income allows them . Households in Tajikistan, emphasize the importance of remittances for saving practice, and they state that they can always save some money when they receive remittances from abroad. Two almost equally represented forms of saving are stashing the money at home (in cash) and depositing it on a bank account or some other financial institution. The practice of keeping money hidden in the household is prevailing in Kyrgyzstan, while saving the money in bank or some other financial institution is practiced in higher percentage in Kosovo. Figure 7.12.5: Form of saving Where do you place your set-aside funds? Multiple answers; Base: Those who save money (30% of target population) Total Serbia Albania Kosovo Bosnia and Herzegovina Tajikistan Kyrgyzstan 100 91 90 80 74 70 56 60 49 47 50 38 39 39 40 37 37 35 38 28 31 30 24 20 13 11 15 7 10 10 1 1 3 0 1 1 0 1 1 1 0 At home in a secret In an account with a With a friend for safe In an e-wallet, mobile Refuse to answer place bank or a MFI / MDO keeping phone account, etc. 143