Spain and the UPU undertake to develop postal financial services in Latin America

Magdalena Alvarez Arza, the Spanish minister responsible for the postal sector, and Edouard Dayan, Director General of the Universal Postal Union (UPU), signed an agreement in Madrid yesterday whereby Spain and the UPU undertook to implement the International Financial Transfer System (IFS). Under this agreement, Spain, through the postal operator Correos, will connect Latin America with the UPU’s electronic financial network, thereby improving the quality of postal services and providing small and medium-sized businesses with access to postal markets.

In addition to the strategic benefits of this agreement, which formalizes Spain’s support for the UPU’s worldwide electronic fund transfer network, the Spanish government will help migrant workers based in Spain to keep in contact with their countries of origin and to transfer part of their savings to their families in a secure and affordable manner.

Spain is currently the leading issuer of remittances sent from the European Union to Latin America. According to a study conducted by the Bank of Spain, in 2006, the 4.5 million immigrants residing in Spain sent over 6.25 billion EUR to their families back home. Spain’s participation in the IFS network will also open up new opportunities with the Maghreb countries.

As part the regional development plan created by the UPU and the Postal Union of the Americas, Spain and Portugal (PUASP), a pilot project between Spain, Chile and Uruguay will be launched shortly, based on the action plan approved by all parties. This agreement will also mark the beginning of a new phase of closer cooperation between the teams of Correos, the UPU, PUASP and the Latin American Posts, which will together provide the technical expertise needed to establish these financial flows.