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MOLDOVA - Increasing Efficiency of Remittance Flows

9.12.2008

 

 

IOM is launching a mass information campaign in Moldova and the main destination countries for Moldovan migrants, Italy and Russia, targeting Moldovan emigrants, their families and other recipients of remittances in a bid to increase the efficiency of remittance flows.

The campaign will provide Moldovan migrants and their families with information on socio-economic reintegration opportunities, including vocational training, professional and small business options and on investing remittances. Leaflets, brochures, radio and TV spots have been developed to encourage and motivate Moldovans to use formal money transfer channels, to open bank accounts, to deposit their money, as well as to use other financial products and services. This material will be distributed in key locations for migrants in Italy and Russia, such as bus stations, airports, consulates, etc.

According to World Bank data, Moldova has the second highest ratio of remittances compared to Gross Domestic Product (GDP), more than 38 per cent in 2007. Remittances sent home by individuals working abroad have increased by 40.5 per cent a year during the past four years. According to the National Bank of Moldova, they rose threefold, from 317 million US dollars in 2003 to 1.2 billion US dollars in 2007. Recent data from the National Bank of Moldova revealed that in the first eight months of 2008, Moldovan migrants had already remitted US $1.1 billion - 52.8 per cent more than during the same period in 2007.

More than 35 per cent of the Moldovan population lives in remittances-receiving households, according to an IOM nationwide survey on remittances in 2008. The majority of the money is used for basic household consumption, consumer durables, buying a home, and debt repayment. Less than seven per cent of remittances is used to finance business investment, and as little as 7 percent is saved in bank accounts.  

As a significant number of Moldovan migrants use informal money transfer channels to send remittances, the information campaign also aims to increase their knowledge on utilizing formal transfer channels which find the right balance between safety and affordability.

For further information, please contact Sophie Baumgartner, IOM Moldova, Tel: + 373 22 23 29 40, email: sbaumgartner@iom.int

 


 

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