Senators Ask Remittance Companies to Cut Haiti Fees

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By Bill Faries and Adriana Brasileiro

Feb. 22 (Bloomberg) -- U.S. Senators John Kerry and Evan Bayh asked Western Union Co. and MoneyGram International Inc. to eliminate or reduce fees on money transfers to earthquake- damaged Haiti through June.

Kerry, who chairs the Foreign Relations Committee, and Bayh, a member of the Banking Committee, said suspending the fees of about 7 percent to 9 percent would help fund recovery efforts after the Jan. 12 temblor, which may have killed 300,000 people, according to Haiti’s president, Rene Preval. They praised both companies for cutting their fees in the immediate aftermath of the quake.

“While we appreciate your initial efforts, the need for a longer commitment is great because for many Haitians remittances will act as a lifeline,” the two Senate Democrats wrote in a letter today. “With your help, Haitian Americans who sacrifice to send remittances will see more of that money reach their families in Haiti who are in desperate need.” Kerry represents Massachusetts and Bayh represents Indiana.

Messages left with spokesmen for both companies weren’t immediately returned.

The Inter-American Development Bank on Feb. 16 estimated that it may cost as much as $13.9 billion to rebuild from the quake, the deadliest-ever in the Western Hemisphere, according to the U.S. Geological Survey.

The economic damage is equivalent to 104 percent to 117 percent of Haiti’s gross domestic product, more than any other nation in modern times has faced, the bank said.

World Bank economist Dilip Ratha said in a statement on his Web site that Haiti receives between $1.5 billion and $1.8 billion in remittances each year.

The United Nations said Feb. 18 that the $1.4 billion is needed to provide food, water, shelter and sanitation to 3 million Haitians throughout 2010, the largest appeal following a natural disaster in the world body’s history.