4B USD Foreign Remittances from Filipino Seafarers in 2011

In 2011, 22% of the total foreign remittances came from sea-based migrant Filipino workers amounting to 4 billion US dollars. 
Filipinos account for over 25% of all active seafarers in the world. The United Nations acknowledge the impact Filipinos have in the global trade, secretary general Ban Ki Moon even hoped for more Filipino youths would join the profession. In 2010, the secretary-general of IMO (International Maritime Organization) hailed Filipino sailors as the "unsung heroes" of the unsung industry, namely the shipping industry that carried most of the world trades in goods. 
Just recently, Angkla, a legislative action group espousing representation for all Filipino seafarers in the government was formed. The group believes that the country's merchant mariners should be given sectoral representation in government to champion their rights and have direct approach to policy-making. Follow their website for more information http://www.angkla.org/ .

Net Forex To Exceed Previous Forecast

The net inflow of foreign exchange into the country is expected to top the initial estimate of $6.7 billion by the end of the year as developments offshore led to a higher-than-expected entry of “hot money” and robust growth in remittances.

The Philippines could end the year with record foreign reserves of $76 billion, the Bangko Sentral ng Pilipinas (BSP) chief said, backed by modest growth in remittances from overseas Filipinos and helping boost the balance of payments (BoP) surplus. The central bank’s previous forecast was for GIR to hit $74-75 billion this year. That forecast was already breached in October when figure reached $75.8 billion. 

“We are reviewing the projection to take into account developments over the past months,” BSP Governor Amando Tetangco Jr. told reporters.

This year, remittances remained strong despite the lingering crisis in the eurozone and the weak economy of the United States because of the increasing demand for Filipino workers in alternative, foreign labor markets.
Fiscal and economic problems in the West have also prompted foreign portfolio fund owners to shift their money to emerging Asian markets such as the Philippines where growth outlook was much better.
Strong inflows of foreign currencies into the country this year are credited for helping improve the country’s creditworthiness.
The central bank said the rising BOP surplus and GIR helped the country win the favor of the international financial community, which now sees the Philippines as being more capable to service its liabilities to foreign creditors and investors.

PDIC: All Valid LBC Accounts, Claims Will be Paid


MB places LBC Dev’t Bank under PDIC receivership
All Valid Accounts, Claims Will Be Paid
The Monetary Board (MB) placed LBC Development Bank under receivership of the Philippine Deposit Insurance Corporation (PDIC) by virtue of MB Resolution No. 1354 dated September 9, 2011. As Receiver, PDIC took over the bank on September 9, 2011. PDIC shall gather, verify and validate all bank records and administer and preserve its assets for the benefit of all creditors.
PDIC assured depositors of LBC Development Bank that all valid accounts and deposit insurance claims will be paid as soon as possible. It also said that updates will be issued as soon as examination and validation of accounts are completed.
The state deposit insurer will conduct a series of Depositors Forums (DF) in the localities where branches of LBC Development Bank are located. The schedules of the DF will be announced as soon as possible in the bank premises and in the PDIC website, www.pdic.gov.ph. During the DF, PDIC representatives will explain the requirements and procedures in filing deposit insurance claims. PDIC advised the depositors to await announcements on the schedules of the DF.
LBC Development Bank is a 20-unit thrift bank. Its head office is located at 809 J. P. Rizal St., Poblacion, Makati City. Its 19 branches are located nationwide. Latest available records show that as of June 30, 2011, LBC Development Bank had estimated total deposit liabilities of P6.09 billion comprising one tenth of one percent of the total deposits in the Philippine banking system. Insured deposits amount to P3.73 billion. Number of accounts totaled to 321,516 and 99.4% of the said total number of accounts are fully covered by deposit insurance.
Announcements on the schedule of claims servicing operations will be posted on the PDIC website, www.pdic.gov.ph, and in the bank premises.

Notice to Depositors of LBC Development Bank on Conduct of Depositors Forum



Notice to Depositors of LBC Development Bank on Conduct of Depositors Forum
The Depositors Forum is a venue for PDIC to discuss the procedures and requirements for filing claims. Following is a partial schedule of the Depositors Forums:
LBC DEVELOPMENT BANK BRANCHESDATETIMEVENUE
Head OfficeFor depositors with surnames starting A-L:
Thursday, Sept. 15, 2011
2:30PMMakati Coliseum, Mascardo St., Brgy. Singkamas, Makati City
Head OfficeFor depositors with surnames starting M-Z:
Monday, Sept. 19, 2011
2:30PMMakati Coliseum, Mascardo St., Brgy. Singkamas, Makati City
Aklan BranchTuesday, Sept. 20, 20118:30AMAPSTA Teachers' Center 19 Martyr Cor. Mabini Sts., Poblacion, Kalibo, Aklan
Angeles BranchWednesday, Sept. 14, 20112PMSangguniang Panglunsod Session Hall, New City Hall, P. Maragul, Angeles City (near Marquee)
Baguio BranchFriday, Sept. 16, 20119:00AMCAP Development Center Auditorium, 4thFloor CAP Bldg., Post Office Loop, Baguio City
Balanga BranchWednesday, Sept. 14, 20113:00 PMBrgy. Tenejero Covered Court, Balanga, Bataan
Batangas BranchWednesday, Sept. 14, 2011People's Quadrangle, Batangas City (At the back of City Hall)
Cebu BranchFriday, Sept. 16, 20119:00 AMSinulog Hall, Public Library, Jones Ave., Cebu (in front of Cebu Doctor Hospital)
Iloilo BranchMonday, Sept. 19, 20119:00AMDivision Social Hall & Cultural Hall, Gen. Luna cor. Mabini St., Iloilo (near Mabini Elem. School)
Imus BranchThursday, Sept. 15, 20113:00PM2nd Floor, Bulwagang Ugnayan (Old Imus City Hall)
Laoag BranchMonday, Sept. 19, 2011City Hall Covered Court, Laoag City
Naga BranchWednesday, Sept. 14, 20118:30AMNaga City People's Hall (inside City Hall), J. Miranda Ave., Naga City
San Pedro BranchThursday, Sept. 15, 20119:30AMBrgy. Poblacion Covered Court, 20 Ramirez Ave., Cataquiz 1 Subdivision, Brgy. Poblacion, San Pedro, Laguna
Timog (Quezon City)Tuesday, Sept. 13, 201110AMCovered Court, Barangay Laging Handa, Scout Gandia, Quezon City
Urdaneta BranchThursday, Sept. 15, 20119AMMain Gym, Urdaneta City Convention and Sports Center, (near LTO Office), Urdaneta, Pangasinan
Vigan BranchFriday, September 16, 20112PMCuta Gym, Barangay 9 corner Rivero St. and V. delos Reyes St., Vigan City
OlongapoWednesday, Sept. 14, 20119AMRizal Triangle Multi-purpose Center, West Bajac-Bajac, Olongapo City

  1. Schedule of Depositors Forums for the Head Office and other Branches not covered above will be announced later.
  2. The schedule of claims settlement operations (CSO) will be announced later.
  3. For more information and updates, please get in touch with PDIC through:
    1. PDIC Hotlines (02) 841-4630 and 841-4631
    2. Email at pad@pdic.gov.ph
    3. Website: www.pdic.gov.ph

PDIC Statement on LBC Development Bank


Below is the statement published by PDIC for the depositors of LBC Development Bank: 

PDIC Statement on LBC Development Bank
September 12, 2011
The Philippine Deposit Insurance Corporation (PDIC) assures the public, particularly depositors of LBC Development Bank, that the Corporation will pay all valid accounts and deposit insurance claims as soon as possible.
Latest available records prior to takeover show total deposit accounts of 321,516. We shall announce the start of payout as soon as possible, given the volume of accounts involved.
We request depositors to await further announcements on claims operations. PDIC shall give periodic updates as soon as the examination of bank records is complete. These will be posted in bank sites and the PDIC website, www.pdic.gov.ph.
Meantime, PDIC is arranging the conduct of Depositors Forums for depositors of the Head Office and all its 19 branches nationwide. During the Forums, we will explain procedures and requirements on filing claims and answer depositors’ queries. Schedules of the Depositors Forums will be announced shortly. These will be posted in the PDIC website, in the bank and branch premises as well as conspicuous places in the localities where the branches are located. Depositors may also call the PDIC Helpdesk at 841-4630 and 4631 or email the Public Assistance Department at pad@pdic.gov.ph.
Again, we assure depositors that PDIC will pay deposit insurance for all valid accounts and claims.

LBC Bank Closes

Depositors of LBC Developtment Bank have no idea what was going on for days when they couldn't access their money through atms until it was finally closed by the Banko Sentral ng Pilipinas. The Monetary Board has ordered the LBC Development Bank to be placed under the receivership of PDIC, Philippine Deposit Insurance Corp since last Friday. The bank was deemed insolvent because it could no longer sustain its operations and obligations to its depositors and debtors.

The PDIC said that the LBC Development Bank is a small bank and will not affect the banking industry as a whole negatively. However, LBC being known worldwide to many Filipinos as a courier and remittance company, a lot of OFWs and their relatives have active accounts to its affiliate bank, the LBC Development Bank. It sad to learn that it will take sometime for them to get their deposited money of not more than 500,000 Pesos back through PDIC. In the event that a deposit has more than the insured amount, they would have to wait further for the bank to sell their assets to be used to divide for its depositors.

Notice of insurance claims will be posted at the LBC bank branches and PDIC website www.pdic.gov.ph

Metrobank Partners with Moneygram International

The Metropolitan Bank & Trust Co. (Metrobank) has expanded its remittance service by partnering with leading global payments company MoneyGram International to extend its money transfer service to Filipinos abroad.
Metrobank was the first MoneyGram agent in the Philippines to implement AgentConnect, a platform integrating the money transfer service with the bank’s system.  With this platform, beneficiaries receive cash more quickly and conveniently at any Metrobank branch. OFW beneficiaries only need to complete and submit a 'receive' form, along with their valid IDsRemittances may then be released either in Philippine Pesos or in US. Abroad, the OFWs may send money through MoneyGram’s global network of 233,000 agent locations in 191 countries and territories. 

Maximizing Currency Conversion - Local Money Changers

A good way of maximizing your foreign money's worth in Philippine Peso is to convert them to local currency via foreign exchange centers. Local money changers, without a doubt, give out higher rate of foreign currency to Philippine Peso than banks offer (although, if you are to convert a huge amount of foreign money to peso, banks definitely can match these rates especially if you are dealing with a bank you have existing business relationship with). On the average, they may offer 15% higher than what banks can give. Money changers are quite common in Manila Malate-Mabini area as well as around Makati Business District. Most have visible security guards and relatively safe access but make sure to transact inside the premises of these money changing shops. Be aware of people in the streets who would try to supposedly give you a better rate than what these shops could. Some bigger foreign exchange shops even have added services where you can transfer the exchanged money via door to door to a local address, deposit to a bank account or received through a partner payout service like ML Kwarta Padala, Cebuana Lhuilier, or Smart Money Padala/Globe Remit therefore removing the burden of carrying money out of these shops after transaction.
It means that when sending money to the Philippines, you may have to let your recipient receive the money in foreign currency without the bank or money transfer agent converting it to local money. These transactions may be limited to major foreign currencies like the USD, Yen or Euro and/or may require that the recipient have a dollar deposit account in his/her local bank.
 

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About this Site

This site aims to provide you with everything you need to know to send money to the Philippines. With about 10 million Pinoys living overseas, mostly to work, remittances to the Philippines remain to be the economy's main source of foreign fund. The World Bank estimated 17B USD in remittances by end of 2009, next only to India and China as the world's top recipient countries of remittances. I hope this site can provide a comprehensive guide and all the possible options for Filipinos living abroad and Foreigners living in the Philippines to provide for their families and loved ones in the most economical and convenient way.