Remittances from Turkish migrants decline by 90 pct in 14 yrs

In 1998, 2.8 million Turkish expats sent $8.2 billion to Turkey; this amount dropped to $961 million in 2012, yet the number of migrants increased to 4.3 million.

Remittances from Turkish migrants decline by 90 pct in 14 yrs

World Bulletin/News Desk

Remittances sent by Turks living abroad to their families in Turkey have declined by 90 percent in the past 14 years, according to World Bank data.

Funds sent by migrants have been in a declining trend for the past 14 years. In 1998, 2.8 million Turkish expats sent $8.2 billion to Turkey; this amount dropped to $961 million in 2012, yet the number of migrants increased to 4.3 million.

Experts say that one of the reasons behind the decline in funds sent back to Turkey is the living conditions of the migrants. Many are unemployed or live below the poverty line. More migrants are also settling abroad, building homes and investing in the countries they live in instead of investing in Turkey, which contributes to the decline.

Meanwhile, the deadline for applications for those who want to benefit from the wealth amnesty law will expire on Wednesday. The wealth amnesty law was passed by Parliament on May 22 and is designed to incentivize affluent Turks to return funds deposited abroad to Turkey without punitive taxes and fines.

Those who apply under the new legislation will pay just 2 percent on eligible funds, avoiding taxes that could otherwise reach 30-40 percent. They will also avoid an investigation of whether or not the wealth was generated in Turkey and improperly kept overseas.

Turkey last implemented such a program in 2009 to help mitigate the effects of the global financial crisis, drawing backing about TL 50 billion, or $28 billion at current exchange rates.

Last Mod: 30 Temmuz 2013, 11:19
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