US signs historic deal with El Salvador and Honduras for remittance securitization
Does this prove that the administration is fully compliant with illegal immigration They have hatched a plan that allows countries to get loans based on the amount of money that will sent by their migrants home from the US. All part of the greater plan to reditribute the wealth of the US to "other" needy nations.
Do US citizens families suffer economically and socially so that the governments of these third world countries can build bridges and infrastructure?
US signs historic deal with El Salvador and Honduras for remittance securitization
Submitted by Sanket Mohapatra on Wed, 10/13/2010 - 12:09
The United States has recently signed separate Memorandums of Understanding (MoUs) with El Salvador and Honduras to assist them in securitizing their future remittance receipts to raise financing for infrastructure and development projects.
Under the Building Remittance Investment for Development, Growth, and Entrepreneurship (BRIDGE) initiative, banks in these countries will leverage their future remittance receipts to raise lower-cost and longer-term financing in international capital markets to fund infrastructure, public works, and commercial development initiatives (see press release).
In a speech in New York City on September 22, Secretary of State Hillary Clinton explained how BRIDGE would work to raise critically needed development funding:
“…Now, if they [migrants] send these remittances through the formal financial system, they create huge funding flows that are orders of magnitude larger than any development assistance we can dream of. By harnessing the potential of remittances, BRIDGE will make it easier for communities in El Salvador and Honduras to get the financing they need to build roads and bridges, for example, to support entrepreneurs, to make loans, to bring more people into the financial system…..Through BRIDGE and its in-country partners, local banks will be able to leverage their remittance flows….With the leverage from remittances, the local banks will be able to get lower-cost, longer-term financing for investments in infrastructure projects and small businesses.”
The financing structure proposed under BRIDGE is similar to that used by banks in several remittance-receiving countries such as Brazil, Jamaica, Kazakhstan, Mexico, Peru and Turkey, to raise over $15 billion in international financing during the last decade (see previous work on this topic by my colleagues Dilip Ratha and Suhas Ketkar on securitization of future-flow receivables and new paths to funding).
The BRIDGE initiative provides an excellent application of innovative financing instruments leveraging on migration and remittances. The World Bank group has recently become involved in this area. The International Finance Corporation has recently provided up to $30 million debt financing for securitizing the significant remittances of El Salvadorans working abroad to raise financing for a credit cooperative Fedecredito. These additional resources will be used to increase lending to micro-entrepreneurs and low-income people in the country.
Increasingly the Bank is receiving requests to assist countries to raise funds through diaspora bonds.
GO TO THIS SITE AND READ EVERYTHING THERE AND UNDERSTAND WHY THE GLOBALISTS WILL NOT DEPORT THE ILLEGAL ALIENS.
US signs historic deal with El Salvador and Honduras for remittance securitization | A blog about migration, remittances, and development
Press Release
Quote:
22 September 2010
U.S. BRIDGE Initiative Commitments with El Salvador, Honduras
U.S. DEPARTMENT OF STATE
Office of the Spokesman
September 22, 2010
MEDIA NOTE
U.S. BRIDGE Initiative Commitments with El Salvador and Honduras
On September 22, 2010, Secretary of State Hillary Rodham Clinton signed separate Memorandums of Understanding (MOU) with Honduran President Porfirio Lobo and Salvadoran Foreign Minister Hugo Martinez outlining the United States’ commitment to the Building Remittance Investment for Development Growth and Entrepreneurship (BRIDGE) Initiative in Honduras and El Salvador.
Led by the Department of State’s Bureau of Economic, Energy and Business Affairs, the United States has committed through the BRIDGE Initiative to work with El Salvador and Honduras to develop and support partnerships with strong and reliable in-country financial institutions to maximize the development impact of remittance flows from the U.S. and to help establish strong foundations for sustainable, inclusive, and transformational economic growth.
Remittances have the potential to be a transformational asset in meeting the development goals of the Latin America region as they can enable greater access to the types of long-term capital required for the multi-year investments that will sustain growth. The Inter-American Development Bank (IDB) estimates that U.S. $50 billion in worker remittances flow from the U.S. to Latin America and the Caribbean annually.
Under the BRIDGE Initiative, strong in-country financial institutions in Honduras and El Salvador will be able to partner with the United States and multilateral partners to help explore options to use their remittance flows safely and soundly as an asset to raise lower-cost and longer-term financing for infrastructure, public works, and commercial development initiatives that are currently lacking in these countries. USAID-supported market assessments confirmed the feasibility of BRIDGE’s goals in Honduras and El Salvador.
Based on previous successful efforts in Latin America, Europe, the Middle East, and Africa,
BRIDGE will not impact the basic transfer of remittances. The millions of households in El Salvador and Honduras that depend on remittances as income and for basic daily living expenses will not see their regular payments disrupted by this effort.