Remittances from abroad totaled about 475 mln USD in six months

The Moldovans working abroad over January-June 2007 sent about 475 mln to Moldova through commercial banks, as against about 354 mln USD in the corresponding period last year. According to the central bank, the remittances in January added up to 60.3 mln USD, in February to 65.3 mln USD, in March to 84 mln USD, in April to 79.9 mln USD, in May to 92.2 mln USD, in June to 93.9 mln USD. Approximately 340 mln USD or 71% of the total remittances were sent through money transfer systems. Last year the Moldovans transferred about 855 mln USD to Moldova through commercial banks, or by a quarter more than last year. Experts say that the remittance inflows, by official and unofficial ways, could reach 1.2 – 1.3 bln USD in 2007. Most of the remittances come from Russia ands Italy. According to the World Bank, the Republic of Moldova places the first in Europe by the volume of remittances, which make up one third of the Gross Domestic Product. A recent study by the International Organization for Migration shows that more than 40% of the domestic households in Moldova receive remittances from abroad. Most of this money is spent on current consumption, to purchase domestic appliances, real estate and to settle the debts. Only a small part of the remittances, less than 7%, is invested in business, and about 5% are deposited in bank accounts.