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Bulgarian expats sent €1.5B home in 2007

Money sent home by Bulgarians living abroad have boosted the Bulgarian economy with €1.5 billion in 2007, the latest data from the World Bank showed, as quoted by the Bulgarian National Radio.

For most developing European countries, migrant workers sending money back to their relatives back home was the second most important source of external revenue, both for individual households and for the economy as a whole, after direct capital investments.

In recent years, remittances have played an increasingly important role for the economies of many countries, contributing to economic growth and to the livelihoods of wide swathes of people – although generally not necessarily the poorest of the poor. As remittance receivers often have a higher propensity to own a bank account, remittances promoted access to financial services for the sender and recipient, an essential aspect of leveraging remittances to promote economic development.

But in a time of financial crisis and a constricting credit crunch which spells into shrinking direct capital investment, remittances  are expected to shrink drastically, as increasing number of expatriate workers may be forced to return to their home countries.

The volume remittances sent to Bulgaria put it in the top ten countries. It ranked sixth in the ranking topped by Romania with €5.5 billion, followed by Poland with €4billion, Serbia with €3.9 billion and the Russian Federation with €3.15  billion euro.

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