PANEL DISCUSSION WILL EXPLORE WHETHER POSTAL SAVINGS ACCOUNTS CAN SPUR SAVINGS FOR DEVELOPMENT

Press Release
PI/1222

PANEL DISCUSSION WILL EXPLORE WHETHER POSTAL SAVINGS ACCOUNTS CAN SPUR SAVINGS FOR DEVELOPMENT

In search of new funding for development, an old form of savings institution -- postal savings accounts - is being given a new look, and a group of experts will discuss the possibility and desirability of expanding this institution as a means of mobilizing resources for development, at a panel discussion on Monday, 7 February, at United Nations Headquarters.

Often privatized or phased out in industrialized countries, postal savings accounts have been a poor-persons' banking system in several countries for well over a hundred years. And, they remain a possible tool for developing countries to mobilize domestic savings. While postal savings systems have been superseded by private banking systems in some developed countries, the postal accounts still survive in such countries as Italy and Japan.

Often no more than a separate window at a local post office, postal savings accounts can be likened to micro-finance efforts. With competitive interest rates, no balance requirements and low transaction costs, postal savings accounts provide depositors who are not served by the private banking system with a secure mechanism to save. Postal savings institutions usually generate a profit for the postal systems, in contrast with many government-run institutions.

Postal savings systems currently operate in over 60 countries, and 44 countries operate "giro" account systems, which are similar to checking accounts. There are presently 45 postal savings and 28 giro payment systems operating in developing and transition countries.

A study of postal savings accounts has been launched in support of the preparatory process for the conference on "Financing for Development" which will take place in 2001. The conference is aimed at exploring and unlocking additional resources that would promote development, especially in the world's poorest countries.

Speaking at the panel discussion, which will be held in Conference Room 3 from 10 a.m to 1 p.m., are Moussibahou Mazou, Vice-Director-General of the Universal Postal Union; R.U.S. Prasad, Director-General of Posts for India; Hiroshi Tanaka, Vice- Director-General of the Postal Savings Bureau for Japan's Ministry of Posts; and Urazaly Yerzhanov, Director-General for Kazakhstan's Postal Services. Giovanni Brauzzi (Italy), Vice-Chair of the Second Committee of the fifty-fourth session of the General Assembly, will chair the event.

For additional information, please contact the Development and Human Rights Section, Department of Public Information: Dan Shepard, tel. (212) 963-5851; or Mark Scher, Department of Economic and Social Affairs, tel. (212) 963-8018.

* *** *