Banks see slower OFW remittance growth

Banks operating in the Philippines see the growth of money sent home by Filipinos abroad slowing down but expect steady growth in the amount of loans extended to corporate and individual borrowers this year.

Bankers Association in the Philippines president Aurelio Montinola III told reporters that the growth in overseas Filipino workers’ remittances would slow down to a range of five percent to six percent primarily due to the tensions in the Middle East and North African (MENA) states as well as the disasters in Japan.

“I think the remittance was close to double digit before and I think the projections today is between five percent and six percent,” Montinola stressed.

The BSP has lowered its OFW remittance growth forecast to seven percent or $20.1 billion instead of eight percent or $20.2 billion this year. It expects the growth in OFW remittances to ease further to five percent or $21.2 billion next year.

Read more at Philippine Star

Con Yap