BPI forecasts double-digit growth in remittances

MANILA, Philippines - The Bank of the Philippine Islands (BPI) is optimistic that the remittance business in the Philippines will expand on the higher end of the single-digit growth this year.

The Bangko Sentral ng Pilipinas (BSP) said that its conservative forecast is flat growth to an optimistic view of between two to three percent this year. It registered total remittances of $16.4 billion last year.

“In fact, we even see the remittance business for BPI growing by over 10 percent this year,” Raul Marcelo de Leon Dimayuga, president of BPI Direct Savings Bank.

Total remittances in the first semester of 2009 hit $8.5 billion for a 2.9 percent increase for previous levels. In the month of June alone, it grew by 3.3 percent to $1.5 billion.

Traditionally, the second quarter reflects weaker remittances and peaks at the last quarter.

“The continued growth of remittance flows since January this year accompanied by emerging sings of improving global economic conditions have affirmed the positive outlook for steady remittance for 2009,” Amando M. Tetangco Jr., Governor of the Bangko Sentral ng Pilipinas (BSP), said.

To be able to increase its scope, BPI increased its presence in the Middle East market through correspondent banking, remittance companies and international money transfer firms.

It was timely since remittances from the United States grew albeit in an almost snails pace.

In contrast, deployment of Filipinos steadily increased including Qatar, Chad, Algeria, Malta and Saudi Arabia.

Moreover, the Philippine Overseas Employment Authority (POEA) reported that the employment of additional production workers in Taiwan was facilitated starting August through the special hiring program for Taiwan (SHPT) in cooperation with the Manila Economic and Cultural Office (MECO).

Sea-based deployment remains strong as Filipino seafarers have been retained despite the large number of dry-docked cargo vessels due to the economic crisis.

BPI reportedly controls 60 percent of the remittance business among sea-based Filipinos.

The BSP reports that remittances from sea-based Filipinos grew by 4.5 percent while it expanded by 2.5 percent for land-based Filipinos. – Ted Torres