Remittances to Latin America and the Caribbean to top $100 billion a year by 2010, IDB fund says
http://www.caribbeanpressreleases.com/articles/1469/1/Remittances-to-Latin-America-and-the-Caribbean-to-top-100-billion-a-year-by-2010-IDB-fund-says/Page1.html
S Coward
By S Coward
Published on 19-Mar-07
Guatemala City -- March 19, 2007 --- Remittances to Latin America and the Caribbean will continue to grow in coming years and surpass $100 billion a year by 2010, according to the Inter-American Development Bank’s Multilateral Investment Fund (MIF).
Economic and demographic factors will keep pushing growth of money transfers
Guatemala City -- March 19, 2007 --- Remittances to Latin America and the Caribbean will continue to grow in coming years and surpass $100 billion a year by 2010, according to the Inter-American Development Bank’s Multilateral Investment Fund (MIF).
MIF Manager Donald F. Terry today presented the estimate for the money transfers made by Latin American and Caribbean migrants at a news conference held here on the eve of the annual meeting of the IDB Board of Governors, which will convene here Monday and Tuesday.
“Given present economic and demographic trends in Latin America and the Caribbean and in industrialized countries, remittances will continue to grow in volume over the next few years to more than $100 billion a year by 2010,” he said.
For the IDB and the MIF, added Terry, this growth is not a cause for celebration because it reflects the fact that the region cannot generate sufficient income opportunities to prevent millions of people from migrating.
Nevertheless, he said, remittances will continue to flow and already exceed both foreign direct investment and overseas aid to Latin America and the Caribbean, helping millions of families to escape poverty.
“The challenge for the countries in this region, and for institutions such as the IDB and the MIF, is to find ways so these flows may have a greater development impact by offering migrants and their families more options to get more out of their money,” Terry said.
The IDB and the MIF support programs to expand the economic impact of remittances by encouraging financial institutions to handle these flows so that people who send or receive money transfers may build credit histories and gain access to services such as savings accounts, insurance, pensions and business and housing loans.
The MIF will also support a new program launched by the International Fund for Agricultural Development (IFAD), which will establish a $10 million facility to finance projects to cut the cost of making money transfers to remote rural areas around the world.
Remittances in 2006
Latin American and Caribbean countries last year received some $62.3 billion from its migrants, mostly in North America, Europe and Asia. The total was 14 percent higher than the amount for 2005, said Terry.
At $23 billion, Mexico was by far the top recipient of remittances, followed by Brazil ($7.4 billion) and Colombia ($4.6 billion).
Several countries received slightly more or less than $3 billion: Guatemala, El Salvador, the Dominican Republic, Ecuador and Peru.
For 2007, Terry said, the MIF expects remittances to Latin America and the Caribbean to rise to around $72 billion.
About the MIF
The Multilateral Investment Fund promotes private sector development in Latin America and the Caribbean, with an emphasis on microenterprise and small business. The MIF, which is administered by the IDB, makes investments, loans and grants to finance innovative projects in areas such as microfinance.
The MIF began analyzing remittances in 2000 to gauge their volume and economic impact. Their studies and projects spurred competition among service providers and encouraged financial institutions to enter a market traditionally dominated by money transfer companies.
The fund currently finances various programs seeking to leverage remittances and expand access to formal financial services for migrants and their families as well as to stimulate economic activity and job creation in their communities of origin.
Press Contact
Peter Bate
peterb@iadb.org
(202) 623-2609
MIF Manager Donald F. Terry today presented the estimate for the money transfers made by Latin American and Caribbean migrants at a news conference held here on the eve of the annual meeting of the IDB Board of Governors, which will convene here Monday and Tuesday.
“Given present economic and demographic trends in Latin America and the Caribbean and in industrialized countries, remittances will continue to grow in volume over the next few years to more than $100 billion a year by 2010,” he said.
For the IDB and the MIF, added Terry, this growth is not a cause for celebration because it reflects the fact that the region cannot generate sufficient income opportunities to prevent millions of people from migrating.
Nevertheless, he said, remittances will continue to flow and already exceed both foreign direct investment and overseas aid to Latin America and the Caribbean, helping millions of families to escape poverty.
“The challenge for the countries in this region, and for institutions such as the IDB and the MIF, is to find ways so these flows may have a greater development impact by offering migrants and their families more options to get more out of their money,” Terry said.
The IDB and the MIF support programs to expand the economic impact of remittances by encouraging financial institutions to handle these flows so that people who send or receive money transfers may build credit histories and gain access to services such as savings accounts, insurance, pensions and business and housing loans.
The MIF will also support a new program launched by the International Fund for Agricultural Development (IFAD), which will establish a $10 million facility to finance projects to cut the cost of making money transfers to remote rural areas around the world.
Remittances in 2006
Latin American and Caribbean countries last year received some $62.3 billion from its migrants, mostly in North America, Europe and Asia. The total was 14 percent higher than the amount for 2005, said Terry.
At $23 billion, Mexico was by far the top recipient of remittances, followed by Brazil ($7.4 billion) and Colombia ($4.6 billion).
Several countries received slightly more or less than $3 billion: Guatemala, El Salvador, the Dominican Republic, Ecuador and Peru.
For 2007, Terry said, the MIF expects remittances to Latin America and the Caribbean to rise to around $72 billion.
About the MIF
The Multilateral Investment Fund promotes private sector development in Latin America and the Caribbean, with an emphasis on microenterprise and small business. The MIF, which is administered by the IDB, makes investments, loans and grants to finance innovative projects in areas such as microfinance.
The MIF began analyzing remittances in 2000 to gauge their volume and economic impact. Their studies and projects spurred competition among service providers and encouraged financial institutions to enter a market traditionally dominated by money transfer companies.
The fund currently finances various programs seeking to leverage remittances and expand access to formal financial services for migrants and their families as well as to stimulate economic activity and job creation in their communities of origin.
Press Contact
Peter Bate
peterb@iadb.org
(202) 623-2609