Somali Ministers urge Barclays to maintain remittance system

Sep 10, 2013

Several Somali ministers voiced their concern over the effects of tightening regulations on the international banking system, as these could prevent the Somali Diaspora from supporting their families through remittances, the Somali Prime Minister's office said Thursday (September 5th).

Several Somali ministers voiced their concern over the effects of tightening regulations on the international banking system, as these could prevent the Somali Diaspora from supporting their families through remittances, the Somali Prime Minister's office said Thursday (September 5th).

Barclays plans to stop supporting money transfers through around 250 remittance companies - with many based in Somalia and Somaliland - from the end of September.

The ministers called on Barclays and other international banks to maintain the current remittance system."We are deeply concerned the situation of the money transfer business, which is the main source of income to millions of people and contributes a significant percentage to the regional economy," Deputy Prime Minister Fowsiyo Yusuf Haji Aadan said during a cabinet meeting, Sabahi newspaper reports.

Overseas remittances account for up to half of the economy of Somalia and Somaliland. Around five million people - out of a population of ten million - depend on remittances from among the 1.5m Somalis living overseas, worth more than $1 billion (€754 million) a year, the Financial Times reports.ADNFCR-2976-ID-801635498-ADNFCR