Azernews.Az

Friday March 29 2024

Remittances to Armenia drastically falling

30 October 2014 18:26 (UTC+04:00)
Remittances to Armenia drastically falling

By Mushvig Mehdiyev

Money transfers from foreign countries to Armenia are continuously decreasing amid economic crisis in the country.

Decrease of the remittances has picked up the pace over the last two months. Local media reports that considerable drop of the transfers from the overseas poses threat to the economy and financial condition of the people.

According to the Central Bank's latest data, the amount of the private money transferred to Armenia via bank system in this September was about $153.3 million being below the same figure remitted in the relevant period of the last year. The red balance was roughly $9.2 million, while the total amount of the remittances was about $170 million instead of $180 million.

Money transfers to Armenia reduced for the second month in a row, promising to hit the lowest record ever. Decrease of the money sent from the overseas was calculated at 11.5 percent in August.

Russian markets play a crucial role in the reduction of remittances. The Central Bank reported that Armenian banks received around $146 million remittances from Russia in this September. The figure is under the indicators of the last month and last year. The total transfers made by Armenian migrant workers in Russia was nearly $157 million last year, which testifies for a considerable fall by $11 million compared to this year. The money transfers made by individuals in Armenia's northern neighbor has dropped for the fourth month in a row.

About 85 percent of all remittances that is of great importance for Armenia comes from Russia and the northern giant is the post-Soviet state's second biggest trade partner after the European Union. Economists believe that the sustainable devaluation of the Russian ruble stands behind the current trend experienced in remittances flow. Moreover, the economic stagnation observed in Russia after western sanctions also fuels the reduction of money transfers.

Sociometer Sociological Centers report revealed that fathers of about 300,000 Armenian children work and live abroad. It means that those children eat, wear, study, entertain with the money they receive from their fathers. Decrease of the remittances will deteriorate their lives, dismantling the kids' hopes.

The IMF forecasted nearly 3.3 percent economic growth in Armenia this year. GDP is calculated at $5,900 per capita to rank Armenia 149th among world's countries.

All these portrays the ongoing economic slump in the post-Soviet country. Now the reducing remittances will turn into a catalyst to whip up the economic complexity.

Loading...
Latest See more