The Social Welfare Authority in the German city of Hamburg has initiated a transition towards card-based payments, discontinuing cash aid for refugees, including Syrians. This entails issuing dedicated cards to newly arrived asylum seekers, loaded monthly with a balance. However, the option to withdraw cash is severely limited, capped at 50 euros per month, effectively converting monthly subsidies into balance rather than cash.
Economic expert Dr. Shafiq Arbash contextualized this decision as part of a broader trend of tightening restrictions on Syrians, whether domestically or internationally. He warned of its potential negative impact on the volume and frequency of remittances received from abroad, upon which many Syrian families partly rely.
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Arbash expressed concerns that this policy might extend beyond Germany to the entire European Union, exacerbating restrictions. He highlighted the dire consequences of dwindling remittances, foreseeing increased poverty and food insecurity among affected families. However, assessing the decision’s impact on the exchange rate is challenging due to a lack of precise data on aid dependency.
Meanwhile, media reports have captured dissatisfaction among Syrian refugees in Hamburg regarding the implementation of this decision. They lament difficulties in sending money transfers to their families in Syria due to constraints on cash usage. Refugees fear that this move could coerce them into purchasing goods with their cards at official prices and then selling them for cash.
Germany hosts over 329,000 Syrian refugees with residency rights, receiving financial assistance through the job center, as per Federal Employment Agency statistics. The updated “Job Center salary” stands at 563 euros per month, with adjustments for adults cohabiting. Under the new plan, 460 euros per month will be disbursed as a balance on the card, with cash withdrawals limited to 50 euros.
It’s worth noting that there are no specified limits on foreign remittances from expatriates to their families in Syria.
