DPA/Bangkok

The world’s poorest countries lost an estimated 12% of the money remitted home last year to financial fees, three times higher than the global average, the UN said yesterday.

The world’s 48 least-developed countries earned $27bn from remittances from an estimated 27.5mn citizens working abroad, of which at least $3.2bn went to financial transfer fees, the UN Conference on Trade and Development said.

The UN agency proposed that fees be reduced for transfers to those countries, 33 of which are in Africa and nine in Asia.

“The financial institutions do have a corporate, social responsibly to do so,” said Anisuzzaman Chowdhury, macroeconomic policy director at UN regional headquarters in Bangkok.

Total remittances to developing countries were estimated at $372bn in 2011, up 12% from the previous year, according to World Bank data.

Remittance flows have grown annually despite economic slowdowns in the US and Europe and political turbulence in the Middle East.

Remittances have become an increasingly important source of foreign revenues for least-developed countries.

Remittance revenue last year far surpassed foreign direct investment in those nations, which amounted to 19bn in 2011.

Bangladesh, Nepal and Sudan accounted for 66% of the $27bn remitted last year to those countries, the UN said.