An IOM survey on the impact of remittances on households and
communities reveals that more than 35 per cent  of families
benefit from remittances sent by family members working abroad and
that remittances continue to be used to fund basic household
consumption, consumer durables, purchase of housing, and debt
repayment.

According to the data, which was collected among 3,914
households living in rural and urban areas, the total amount of
annual remittance per migrant increased from USD 1,296 in 2006 to
USD 1,848 in 2008.

Data collected by CBS-AXA and analyzed by the experts from the
Kiel Institute for the World Economy also shows that more than 60
per cent of migrants send their money home through formal banking
channels with less than 12 per cent relying on informal services or
personal transfers.  This is partly due to the fact that the
share of households with a bank account has grown to 12 per cent of
families with a family member abroad.

The survey states that Moldovans abroad remain committed to
funding community projects at home, with more than 15 per cent
making donations to help education and infrastructure
projects. 

According to the survey, a third of the estimated 340,000
Moldovans in the Commonwealth of Independent States (CIS) and
European Union (EU) countries reside illegally, which puts them at
higher risk of exploitation and arbitrary treatment by local
authorities.  

According to World Bank data, Moldova ranks first in Europe in
terms of the ratio of remittances compared to Gross Domestic
Product (GDP), constituting more than 38.3 per cent in 2007. The
recent data from the National Bank of Moldova show that Moldovan
migrants remitted USD 1.4 billion in the first ten months of 2008,
compared with USD 1.2 billion in 2007.

"Moldova is among the most impacted countries through the
migration phenomenon, having a significant part of its labour force
working abroad, and their remittances substantially contributing to
the country's GDP," says Martin Wyss, IOM's Chief of Mission in
Moldova. "Although there is currently little data available, a
recession in Europe and a slowdown of the construction sector in
Russia would reduce the volume of remittances and negatively impact
families and their savings."

The report recommends that remittances should not be relied on
as the main source for sustainable economic growth. Instead,
policies should be implemented to stimulate productive investments
based on improvements of Moldova's regulatory and business climates
along with comprehensive measures for the socio-economic
reintegration of returning migrants.

For further information, please contact:

Ghenadie Cretu

IOM Chisinau

Tel: +373 22 23 29 40 (ext. 116)

E-mail: "mailto:gcretu@iom.int">gcretu@iom.int

or visit "http://www.iom.md" target="_blank" title="">www.iom.md