Created: Wednesday, 15 October 2008 Written by Unregistered CorrespFinancial crisis makes money tourism to the Philippines popular. Cebu City - Philippines - October 13 2008.
According to Dick Detering, the financial crisis, characterized by very low interest rates, doesn't exist. "Depends on how you look at it", is his opinion. Detering is the owner of the company MoneyMakers International, a financial advisor in the Philippines. The agency is specialized in savings and offers 18-20 percent interest on a certificate of deposit through its website http://themoneymakers.org/englishindex.html The banking product is offered by a group of 12 rural banks in the Philippines. The interest is tax free on the condition that the account continues at least five years. According to the website, deposits are insured by the PDIC (Similar to the FDIC in the US). Detering says now to be faced with the brand new globalization trend "Money Tourism".
Detering explains further: "Many people consider our high interest account as an oasis in the desert of the financial crisis". According to the owner the crisis doesn't exist at all in the countryside of the Philippines. He says, that, in these times of financial woes, it's better to invest in small banks. "They are not represented at the stock markets. That's why their stock holder structure is more stable. And of course small banks won't be victimized by speculation scandals like the Big Boys", says the owner of MoneyMakers International.
Dick Detering continues: "This applies even more to small rural banks. This is because these rural banks often operate within a protected business environment, often connected to local cooperatives. Benefits for cooperatives are among others: shared buying and banking, less regulation, limited liability, and they pay less tax compared to other companies. Because of this, small banks, that are part of that protected and strong economical environment, are much less vulnerable to influence from overseas, like the current financial crisis (characterized by very low interest rates), victimizing the big banks".
Detering says to be faced increasingly with the brand new globalization trend "Money Tourism". According to him money tourism should be defined as "travelling overseas with the goal to get an interest rate that is much higher than the rate at home".
"More and more money tourists come to the Philippines to open an account and some of them even invest at a distance". "I don't know if we offer the highest interest rate in the world, but I'm sure we come close to it", says the entrepreneur.
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Journalist: Hans Verhagen