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New remittance organization formed in the Philippines

New remittance organization should help more people in the Philippines thrive.

As you probably already know by now, remittance flows are often a significant aspect of Filipinos’ lives, whether you’re sending them or receiving them. And thanks to the establishment of a remittance body, they will be put to greater use in the Philippines.

That’s because the Bangko Sentral ng Pilipinas and the Commission on Filipinos Overseas recently formed a partnership in establishing the Remittance for Development Council, or what will be more commonly referred to as the ReDC.

The organization will serve as an advisory group to help organize and facilitate money transfers for development at the national and local level. The group is also expected to serve as an advisory panel to discuss any issues that relate to remittances.

Several well-known organizations throughout the world have helped make the ReDC a reality, including the national Economic and Development Authority, the United Nations Development Program, the Association of Bank Remittance Officers several remittance service providers and agents.

When the organization was announced at a press conference, Imelda Nicolas, secretary of the CFO, said the ReDC will do more good for more people, thanks to the generosity of Filipinos working overseas to support their family and their country.

“We are more determined in working so that [overseas Filipinos'] hard earned and pooled remittances will be used effectively and productively through cooperatives, microfinance, migrants’ savings and investments programs and social enterprises,” said Nicolas. “These remittances will be our tool in transforming several underdeveloped areas in the country into vibrant communities.”

Armando Tetangco, governor for the BSP, added that the best way the Philippines can show its gratitude for OFW’s work ethic is giving remittance recipients the tools they need to gain financial independence. The formation of the ReDC will help them get there.

According to the Office of the President of the Philippines, remittance flows from overseas Filipinos rose more than 5 percent in the first month of 2012, totaling in excess of $1.5 billion. When remittances from both land and sea-based workers are taken independently, sea-based money transfers grew a whopping 20 percent and land-based increased just under 2 percent.

The most recent statistics indicate that there are just under 9.5 million Filipinos who work overseas, 47 percent of whom are permanent residents. As Tetangco and Nicolas noted, they have helped contribute to the Philippines’ economic and infrastructure development, paving the way for new roads, schools and health centers.

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