The gravity of the Caribbean’s debt situation is generating debt restructuring or credit events in a few countries, and placing significant pressure on credit ratings. Already in 2012, three Caribbean countries have been downgraded by rating agencies.
The decision to involve a remittance provider other than a bank depends on the degree of development of the banking system in the recipient country. And, here, the degree of confidence is key. IV. Efforts to channel remittances through banks and other licensed or registered financial service providers are to be welcomed for several reasons.