The slowdown in remittances affects all social levels, but particularly the poor, Pleytez said.

The slowing growth of remittances should be a red flag for businesses and governments, said Katharine Andrade Eekhoff, a professor at Universidad Centroamericana José Simeón Cañas and an expert on remittances and migration. ''It could all fall like a house of cards if the recession deepens,'' she said.

Not everyone has such a grim view. Miguel Lacayo, a former minister of economy and a Harvard MBA graduate, sees hard times ahead but not catastrophe. Lacayo does not predict a reduction in remittances. At worst, he said, ``perhaps they will continue to grow in the single digits for the next two years.''

Three times more remittances go to the province of San Salvador than to any other part of the country, Andrade Eekhoff said.

María Isabel Contreras, a 25-year-old law student in San Salvador, said the $600 she gets monthly from her mother pays for her education.

''This support is key to my future,'' said Contreras, whose mother has lived in Los Angeles for seven years. ``I can't repay all the effort she puts in day after day to give me what she is giving me.''

But it is in the rural areas, where the proportion of households receiving remittances is higher than in urban areas, that the impact of remittances is most dramatic.

''It's changing the local economy,'' Andrade Eekhoff said.

In Intipucá, modest clapboard houses and food stalls with straw roofs coexist with two-story concrete homes featuring intricate wrought-iron fences, ornate moldings and other architectural details. Late-model pickup trucks, some sporting decals of the American flag or the bald eagle, are common.

LOCAL BETTERMENT

In addition to providing for their families, former Intipucá residents abroad have helped underwrite community projects, such as water wells, cobblestones for the streets, and improvements to the municipal stadium, said Mayor Enrique Méndez.

About 50 percent of the population has moved to the United States and sends remittances.

Méndez is fiercely proud of the help his town has received from remittances, but he acknowledges evidence of trouble and is worried. ''The crisis in the U.S. is affecting remittance,'' he said. ``For some families, the frequency and quantity have diminished.''

According to Méndez, remittances have reached $2 million a month in the past, but ``that has come down considerably in recent months.''

Arnoldo Portillo, manager at the local Banco Agrícola, where residents pick up their remittances, said he began to notice a change about six months ago.

''If before they sent $100, now they are sending $60,'' he said. ``There is movement, but the proportion is smaller.''

Portillo, who has relatives in Los Angeles and Dallas, said the bank serves about 80 customers on a heavy day and about 50 on light days, almost all picking up remittances.

José Guevara, 22, worked in construction in Virginia and sent $250 a month to his mother, an insulin-dependent diabetic. But he was deported last November after immigration officials picked him up during a raid. He left behind his income and a 2-year-old son and has been unable to find work in El Salvador.

''We paid for the medicine and for the rent'' with remittances, said his mother, Ada Isolina Sánchez, an agricultural laborer. She said she must now resort to credit to cover those expenses.

At the local travel agency, Yudith Escobar is selling far fewer plane tickets to the United States. They are typically paid for with remittance money or extra funds meant specifically for the fare.

''The change is dramatic,'' Escobar said. ``I have seen a reduction of 30 to 40 percent in ticket sales.''

"I have a friend who has completely stopped receiving remittances because of the economic situation that has deteriorated in the U.S. and the rising prices here. She had to give up her studies," said Contreras the law student.

She hopes for the best but is afraid. ``I have a year to go at school. I am worried this could happen to me when I am about to finish. It's scary for young people.''

Join the discussion

The Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. In order to post comments, you must be a registered user of MiamiHerald.com. Your username will show along with the comments you post. Thank you for taking the time to offer your thoughts.

     Showing: Oldest first Newest first Most-recommended first Least-recommended first

@Nyx.AuthorDisplayName@ wrote on @Nyx.PostedAtTime@:

@Nyx.repliedToText@

@Nyx.replyAnswerText@

Reply to this Comment @Nyx.Recommender@ @Nyx.AbuseReporter@