Minister De Croo wants lower transfer costs for cash flows to developing countries
Transfer costs on the remittance of money to developing countries must be lower. Deputy Prime Minister and Minister of Development Cooperation Alexander De Croo said this in reaction to the 11.11.11 and HIVA research into Belgian money remittances to developing countries. The research shows that the average transfer price of remittances from Belgium fluctuates at around 8%.
A study published today by 11.11.11 and HIVA reveals that migrants from Belgium send 2 to 5 billion euro to their home country. These figures confirm the growing importance of remittances. International studies indicate that remittances are at least twice as high as the official development budgets of donor countries (ODA). Alexander De Croo: “Money transfers from the diaspora to developing countries are becoming increasingly important. Research by 11.11.11 and HIVA reaffirms this. These remittances are also important for international development: they increase the purchasing power of families in the South and thus boost the local economy.”
According to HIVA’s study, the average transfer price of remittances leaving Belgium is on average 8%. Reducing the cost of remittances to 3% is one of the objectives on the 2030 Agenda for Sustainable Development and the Addis Ababa Action Agenda. "It is absolutely necessary to reduce the costs of remittances,” Minister De Croo confirms. "Fewer transfer costs entails more resources for development. I am therefore conducting the debate, both in our country and internationally."
Among other things, Minister De Croo arranges contacts with banks and transfer agencies offering transfer services. He also consults with the colleagues of Finance, Consumer Affairs and Migration, and with the International Organization for Migration. In addition, it is important to enter into dialogue with the diaspora. “In some cases, cheaper alternatives are available than the known commercial transfer providers, for example through the United Nations. I want to understand why the diaspora uses these cheaper alternatives so little."