US crisis will have little effect on remittances

MANILA, Philippines - Money sent home by Filipinos working abroad will likely stay at the same levels, relatively unharmed from the effects of the current US credit crunch. The effect of the US economic meltdown on remittances from overseas Filipino workers (OFWs) is “not that big," the Bangko Sentral ng Pilipinas (BSP) said. While many OFWs are based in the Middle East and are not affected, most of those in the US are “protected" health professionals, BSP Deputy Governor Nestor Espenilla Jr said. “Sa nangyayari itong malalim ng krisis sa US pwedeng magkaroon ng kaunting impact sa remittances. Kaya lang sa pagsusuri natin ang ating mga remittances galing di lang sa US, malaking parte galing sa Middle East na walang krisis [“The US crisis may have a small impact on remittances. However, based on studies made by the BSP, a large part of remittances come from the Middle East which has no crisis," Espenilla said in an interview on dzBB radio. Before the crisis, remittances from OFWs grew by 18 percent a year, much higher than the initial projection of 10 percent a year, Espenilla said. He added that this estimate translates to remittances of more than $1 billion a month. “Makakabalanse yan sa epekto ng krisis sa US (It can counterbalance the effects of the crisis in the US)," he said of remittances from the Middle East. On the other hand, he said Filipino professionals in the US are relatively “protected" as they are health professionals. “Kakailanganin pa rin nila kahit papaano ang mga nurses, mas protektado yan sa male-layoff. Tingin natin hindi tayo, siyempre medyo alalay tayo binabantayan natin ang situation (The US will still need nurses and health professionals so our OFWs there are relatively protected from layoffs. Of course, we are keeping tabs on them to help them if they are affected)," he said. “I don’t think we should lose hope. Di mawawalan ang remittances, malayo-layo tayo (I don’t think we should lose hope. We won’t run out of remittances. A total loss of remittances is far-fetched)," he added. Meanwhile, Espenilla said it is better to continue consuming at home instead of saving, to prevent manufacturers from closing shop and laying off workers. He said the Philippine government is trying to encourage spending especially infrastructure, education and social services. “Kung lahat tayo magsa-save ... e di ang mga firms that depend on our spending, sila ang mawawalan, they would stop employing (If all of us will save, the firms that depend on our spending will close shop, and stop employing people)," he said. - GMANews.TV