US financial crisis cripples J’cans remittance

Several Jamaicans living in the United States said the economic downturn there is crippling their remittance flows to Jamaica.



For many of them, the financial crunch is a double whammy because they lost thousands of dollars with the crashing of investment schemes like Cash Plus.



Audrey Wilson owns a mortgage brokerage business in Florida, and is a licensed real-estate dealer.



Miss Wilson said the credit crunch has made life tougher for her, and her mother who lives in Jamaica is also feeling the effect.



Miss Wilson said its even worse for Jamaicans living in the US, who had mortgaged their houses to invest in schemes like Cash Plus that have now failed.



She said as a result, many Jamaicans migrants are now in danger of losing their homes.



This is why Miss Wilson is upset with Finance Minister Audley Shaw, who suggested that the US financial crisis would not significantly affect Jamaica.



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



According to him remittances this year are up 11 percent.



The Inter-American Development Bank (IDB) projects that remittances to Latin America and the Caribbean will be cut in real terms this year.



The IDB said about US$67.5 billion would be remitted to Latin America and the Caribbean this year against $66.5 billion in 2007.



The IDB said when the rate of inflation is taken into account the value of the remittances will be cut by more than $1 billion.



Already three major US banks have been forced out of business because of the financial conditions there.