DBP eyes $115M in OFW remittances next year

The state-run Development Bank of the Philippines (DBP) is targeting to corner $115 million in overseas Filipino workers (OFW) remittances next year as it opens more satellite offices worldwide.

DBP senior vice president and head of its Remittance Center Anticer Quebal said 2007 will be the first official year of the remittance operation of the state-run bank, having started only during the middle of this year.

He said despite its late entry to the market, the bank has already recorded a total of $20 million in remittances. "Our remittances, including total from tie-ups and individuals, is $11 million. If we include the corporates, which is $9.2 million, donations and other remittances, the total is $20 million."

The bank opened its first remittance center in Hong Kong only last Sept. 1. "For next year we would like to put up another center in Macau (China) and then North America. We are targeting Houston, Texas and then we’ll just branch out to other areas later on," he said.

In the European region, Quebal said the bank is looking at setting up office in Milan, Italy by the middle of next year or the last quarter of 2007 at the most.

"It depends on how fast we get the approvals, we need to secure three approvals," Quebal explained. The three government agencies are Malacañang, Department of Finance and the Bangko Sentral ng Pilipinas.

In a separate interview, DBP president and chief executive officer Reynaldo David said the bank has formed a partnership with the Overseas Workers Welfare Association to lend a maximum of P50,000 to aspiring OFWs.

According to him, there are many OFW hopefuls who sell almost all their properties or borrow from loan sharks in order to finance their dream of working in a foreign land.

With this project, David said those who wish to try their luck abroad need not pay exorbitant interests for their loans.

He said the pre-departure loan has an interest of 7.5 percent and a term of six months.