RemittancesGateway.org

BBVA to Close Offices Catering to Immigrants

Thursday, 04 June 2009 08:17

Unemployment Rose, Remittances Declined for Foreign Workers

MADRID -- Banco Bilbao Vizcaya Argentaria SA is shutting down its loss-making remittance-service offices catering to immigrant workers, a company official said on Wednesday.

BBVA, Spain's second-largest bank by market value, is closing its 15 Dinero Express branches and three central offices, affecting 121 employees. The staff is being relocated to other bank divisions, the official added.

In addition to remittances, Dinero Express offered credit and debit cards, personal loans and legal advice. It was launched in 2002.

BBVA said the move doesn't affect its money-changing business at the Madrid airport, which also uses the Dinero Express name.

Spain was the top destination for immigrant workers in the European Union during its decade-long construction boom. But the same sectors that hired most immigrant workers during the boom -- construction and services -- are now under pressure. The local housing market has crashed and a deep economic downturn has hit Spain.

Unemployment among foreign residents rose to 28.4% in the first quarter, according to Spain's National Statistics Institute. Remittances from foreign workers residing in Spain fell 7% in 2008 to €7.84 billion ($11.2 billion), according to data from the Bank of Spain.

BBVA previously reduced the number of Dinero Express branches to 15 last year from 130.

The unit reported a loss of €22 million in 2008 and remained unprofitable this year, said Joan Jose Giner, a union official with Comisiones Obreras who works at the bank.

The Bilbao-based lender has been more successful with its Mexico-U.S. money-transfer business, Bancomer Transfer Services, which last year processed more than 45% of the money consignments between Mexico and the U.S.

BBVA owns Bancomer, Mexico's biggest bank by assets.