DeniAfrica

The IPS reports that Securitized Remittances have played a role in mainitaining stability for financial institutions within Latin America:

“Securitising remittances,” as the process is called, was first executed by Mexican banks during the 1994-95 peso crisis, and has since become an increasingly attractive way for financial institutions in Latin America to remain operable, particularly in times of economic and political uncertainty. Globally, between 1994 and 2000, El Salvador, Mexico and Turkey raised a total of 2.3 billion dollars through remittance-backed bonds. Since 2000, Brazil, El Salvador, Kazakhstan, Mexico, Peru and Turkey raised more than 10 billion dollars, largely backed by future remittances.

In a related development Banco Sol is exploring methods of funneling remittance flows to the burgeoning microcredit sector:

Microfinance International, led by Atsumasa Tochisako, a former Latin America official with Tokyo-Mitsubishi bank…announced a tie-up with Banco Sol and a money-transfer company, with the idea of channelling remittances to microcredit. It has also signed deals with HSBC and others to explore possibilities in Mexico and central America. Mr Tochisako raised his first $6m from wealthy Japanese investors but is now aiming for institutional funding.