Official remittances amounted to $600 million in seven months

Moldovans working abroad have sent home about $599 million over January-July via commercial banks. In July, remittances added up to $123.9 million, which is twice the level of January 2007. According to the National Bank of Moldova, the amount of transfers in January constituted $60.3 million, in February – $65.3 million, in March - $84 million, in April – $79.9 million, in May – $92.2 million, in June – $93.9 million. Over 70% of the total remittances were sent through money transfer systems. There are 21 money transfer systems available to Moldovans, of which the most popular are Western Union, Moldova Express, Anelik, MIGOM, Vip Money Transfer, Strada Italia, and SWIFT. Last year the Moldovans transferred about $855 million to Moldova through commercial banks, or by a quarter more than last year. Experts say that remittances, both official and unofficial ones, actually totalled $1.2 to $1.3 billion in 2006. Most of the remittances come from Russia and 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 Organisation 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, for purchases of home 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.

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