About 40% of Moldovan Migrants’ Income Kept Abroad, Survey
OREANDA-NEWS. December 13, 2013. About 37 per cent of the total incomes earned by the Moldovan families working abroad is preserved overseas, according to a survey by the NEXUS Project, operated by IASCI (Austria) and CIVIS (Moldova).
The level of savings held in the host country is described by sociologists as high. Under the same survey, 48 per cent of the Moldovan migrants’ over transfers are used for consumption, 21 per cent represent savings recorded in the country. A quarter of the money sent home is invested in real estate. And only 5 per cent of the more than one billion dollars transferred yearly to private people through Moldovan banks is invested in businesses.
"Our extensive research shows that migration is a huge opportunity for Moldova. We estimated that 1.6 billion euros are saved by 411,000 Moldovans migrating for a long term", said NEXUS Moldova Project Manager Nicolaas de Zwager. He stressed that the efficient intermediation of the respective capital "is a key factor in capturing this development potential. NEXUS, in cooperation with its financial partners, aims at making these significant resources to work both for the benefit of migrants and Moldova. In line with the government’s objectives, we want to successfully overcome the current dependence on remittances, as well as the growth model based on consumption. "
"Commercial banks are crucial actors and that is why we are discussing innovative approaches on services for this market segment," said Nicolaas de Zwager.
The National Bank of Moldova, in partnership with the NEXUS Project Moldova organised a meeting on migration and economic development with the banking decision-makers. The project is supported and funded by the European Union and co-financed by the Swiss Agency for Development and Cooperation.
"The money transfers of the migrants from Moldova represent a relevant potential for achieving the priorities of the national economy. The banks, in their capacity of financial intermediaries, are to adopt advanced visions and complying with the current reality of migration, by constructively combining civic and commercial interests", said First Deputy Governor at the National Bank of Moldova Marin Molosag.
"Creating a platform of integrated services, together with the essential involvement of the banking sector, expresses the society’s current option in addressing the migration phenomena, in the context of turning into account the induced financial resources. Shifting from consumption to investments shows a major need for the development of the country, "mentioned Marin Molosag.
Moldovans working abroad sent home over 1.318 billion dollars in the past 10 months.