How will coronacrosis affect remittances

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COVID-19 epidemic has caused recession in many countries

How the crisis will affect remittances. Photo: pymnts.com

Due to the economic crisis caused by the coronavirus epidemic, the amount of remittances of labor migrants worldwide will decrease by about 20% in 2020, reports Interfax In the context of a World Bank report.

It is noted that the decline will be the most important in modern history. This is largely due to a decrease in salaries and employment of migrants, who are generally more vulnerable to job losses during the economic crisis in the host country.

The World Bank predicts that remittances to low- and middle-income countries will fall by 19.7% to $ 445 billion.

Studies show that remittances reduce poverty in such states, improve diet, increase the cost of education and reduce the use of child labor in underprivileged families.


From the World Bank report

David Malpas, president of the World Bank Group, said it is particularly important to reduce the recovery time of developed economies after the crisis, as “remittances help families pay for food, medical care and basic necessities.”

Paypal magazine help

We previously wrote that Ukraine will not transfer tax cards. Nevertheless, several Ukrainian media outlets have published news that a new tax is considered in Ukraine: Ukrainian bank card users will have to pay a tax of 19.5% (18% income tax and 1.5% military fee) from each payment card, if that Does not come from close relatives.

In fact, on January 31, 2020, the State Tax Service published an explanation on the issue and debunked this myth. The agency once again commented on the fake discussion. “Information presenting a new tax and all funds going to personal cards will no longer be taxed,” the message said.

Read: How to transfer money from card to card: List of Ukrainian services


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