September OFW remittances rose by 8.4%

According to the Institute for Development and Econometric Analysis, Inc. (IDEA) Newsbriefs, a regular publication produced by IDEA, Inc., Overseas Filipino Worker’s (OFW’s) remittances for the month of September rose by 8.4 percent to US$ 1.7 billion. The strong growth in the month of September made the cumulative growth for the first nine months to 7.1 percent. The cumulative remittances for the nine months of 2011 is US$ 14.8 billion.

Likewise, it was reported that remittances from land-based workers comprised 78 percent of the total remittances from the nine months to US$ 11.6 billion versus US$ 3.2 billion remittances from the sea-based workers. U.S., Canada, Saudi Arabia, the U.K., Japan, United Arab Emirates, Singapore, Italy, Germany and Norway were the top sources of the remittances for the nine month period. These countries totaled about 85 percent of the total remittances. As of end-September 2011, the total number of bank branches, correspondent banks, remittance centers and tie-ups with OF remittances abroad grew by 6.7 percent to 4,688 compared to 4,392 as of end-September 2010.

Furthermore, according to the same published report, the Bangko Sentral ng Pilipinas said that bad loans in relations to total loans of commercial and universal banks rose slightly in September. The ratio rose slightly to 2.55 percent from 2.52 percent a month ago. The rise in nonperforming loans in September was due to rise in bad loans and decrease in total loans. Funds placed at the special deposit accounts (SDA) in the central bank hit Php1.706 trillion as of the third week of October. The fund is up by 0.71 percent from the previous month. The SDA rate is pegged to the central bank’s overnight borrowing rate, currently at 4.5 percent.

On the other hand, it was also reported that congress resumed session and planned to pass the Php1.816 trillion before the Christmas. Differences between the Congress and Senate will be settled on November 23 bicameral meeting. Ratification is expected to be lined up by December 5-6 and the President is expected to sign it on December 15.

Furthermore, the Regional Tripartite Wages and Productivity Board (RTWPB) in Central Mindanao found no reason to adjust wages daily wages in the private sector. The latest CPI for Region 12 is up by 4.6 percent in October from 4.3 percent in September. The minimum wage for the region is about Php234 to Php260.

Lastly, according to the third quarter survey of Social Weather Stations, about 52 percent of the Filipinos or equivalent to about 10.4 million Filipinos considered themselves poor from 49 percent in the second quarter. A government spokesman said that higher food crisis caused by the typhoon may have contributed to the outcome, according to IDEA.

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