Clare

The Inter-American Development Bank (IDB) says the Caribbean is set to get relatively fewer remittances due to the combined effects of economic downturns in the United States and Spain, inflation and a weaker dollar.

A release posted on the bank's website yesterday said an analysis of recent remittance data by the IDB's Multilateral Investment Fund has led it to conclude that migrants from Latin America and the Caribbean will send some US$67.5 billion to their homelands in 2008, against US$66.5 billion in 2007.

On Tuesday, Finance Minister Audley Shaw said in Gordon House that domestic financial institutions have suffered only minimal setbacks from their relationships with foreign institutions affected by the US financial crisis. Last night the US Senate passed legislation to support a US$700 billion bailout for financial institutions.

The legislation will now be returned to the House of Representatives, which had initially rejected it, for reconsideration.

Still buoyant

Yesterday, Shaw also said no major fallout was expected in earnings from tourism or remittances.

"Remittances this year have been up 11 per cent, so it is still relatively buoyant," Shaw said.

The finance minister said there was no fallout in certain basic jobs, such as nursing, in which Jamaicans who send back funds are employed.

While Shaw is not expecting job losses in some sectors, many Jamaicans living overseas are bracing for the effects of the US economy on their pockets.

Irwine Clare, managing director of Caribbean Immigrant Services, told The Gleaner that the financial crisis is having a psychological effect on members of the diaspora, as many have cut back on spending and are reconsidering travel plans for upcoming holidays.

"People are saying, 'Let me be careful. Will I still have a job in one, two months' time? Christmas is coming, how much will I have to spend'?" said Clare.

Real-estate concerns

He said there were also concerns within the real-estate sector where many Jamaicans who send remittances back home are employed.

"You must understand that there are many Jamaicans employed in fantastic homes in Long Island, in New York City and in other places, taking care of children and homes while the owners work on Wall Street or Broadway, the people who are directly affected by the financial situation," Clare said. "So just imagine if they decide to cut back on some of their employment."

Audrey Wilson, who owns a mortgage brokerage business and is a licensed real-estate dealer, said Jamaicans living abroad are feeling the effects of the US recession.

Less money

"I used to send my mother US$400 every two weeks, but I can't do it anymore," Wilson said.

She added: "I was only able to send US$55 to my mother last month."

Wilson, who was annoyed by Shaw's comment on job losses, reasoned that Jamaicans in the US are facing tough times. She said many Jamaicans took out loans on homes and invested the money in high-yielding alternative schemes.

She also argued that several Jamaican migrants were in danger of losing their homes, due to the crash of those schemes, and their problem has been compounded by the US credit crunch.

"A lot of jobs are being lost, less remittance will be coming home, so he (Shaw) needs to have a plan B," Wilson said.