Nevertheless, it is important to note the remittance already started declining in before the financial crisis started in 2007. Therefore, this financial crisis could exacerbate the decline in remittances flows. •  Impact on Foreign Direct Investment: Most of the foreign investments are financed, in large part, through loans from external banks and other institutions.
And the process has been feeding and reinforcing itself. •  Second lesson: “good health is always a precarious situation that does not presage anything good.” At some point in the maturing process, brighter prospects have meant under-assessment of the macroeconomic risk and under-pricing of the unit quantity of risk.