House passes bill establishing credit assistance program for OFWs

The House of Representatives has approved on second reading a measure

establishing a credit assistance program for overseas Filipino workers (OFWs).
Rep. Walden ello (!art" #ist$ %kba"an)$ chairman of the House &ommittee on
Overseas Workers %ffairs$ said House ill '()* or the proposed Overseas Workers &redit
%ssistance %ct would provide credit assistance to OFWs even before the" leave the
countr".
The authors of House ill '()* are Reps. +usan ,ap (-nd .istrict$ Tarlac)$ /eptali
0on1ales 22 (#one .istrict$ 3andalu"ong &it")$ 4uan Revilla (!art" #ist$ OFW) and
4oseph 0ilbert 5iolago (-nd .istrict$ /ueva 6ci7a).
ello said an OFW can avail of a loan of not more than !*8$888 from the Overseas
Workers Welfare %dministration (OWW%) to defra" the living e9penses of his or her
famil" during the first months of absence or to pa" for recruitment e9penses including
placement fees$ documentation costs and plane tickets.
,ap said a ne9t:of:kin of the overseas worker:borrower should participate as co:
borrower in the loan entered b" the OFW and OWW%.
;The loan shall be covered with a loan redemption insurance from an" private
insurance provider dul" registered with an accredited b" the 2nsurance &ommission$< ,ap
said.
,ap said loan would be paid in =- monthl" installments at a preferred interest rate
of not more than si9 percent per annum.
Onl" the OFWs with valid emplo"ment contracts processed through licensed
recruitment and manning agencies accredited b" the !hilippine Overseas 6mplo"ment
%dministration (!O6%) are covered b" the proposed act$ ,ap said.
,ap said OWW% shall accredit as man" domestic or foreign banking institutions as
possible which are dul" authori1ed to do business in the !hilippines in order to serve the
loan pa"ment needs of overseas workers:borrowers.
;2t shall be the obligation of the overseas worker:borrower to remit the loan
pa"ment regularl" to OWW% through the banking institutions$< ,ap said.
The bill provides that within one "ear after the effectivit" of the measure$ an online
pa"ment s"stem shall be established wherein the OFW:borrower ma" pa" the loan
NR # 3623B
OCT. 18, 2014
amorti1ation through the 2nternet.
#ikewise$ failure to pa" the loan or an" violation of the terms imposed upon the
loan shall be sufficient ground for the !O6% and all its offices$ including its deputi1ed and
accredited private entities and the !hilippine Overseas #abor Offices (!O#Os) to withhold
the issuance of the Overseas 6mplo"ment &ertificate (O6&) and an" other e9it permit or
clearance to work abroad to the overseas worker:borrower concerned.
5iolators face a >8:da" suspension without pa" for the first offense and dismissal
from the service with a five:"ear dis?ualification to hold an" public office for the second
offense to an" government official or emplo"ee.
!rivate entit"$ which issues an O6& and e9it permit to an" overseas worker:
borrower$ shall suffer the penalt" of >8:da" suspension of its license or accreditation for
the first offense and permanent cancellation of license or accreditation for the second
offense.
The amount needed b" OWW% to implement the &redit %ssistance !rogram for
OFWs shall be charged against the Overseas Welfare Trust Fund and all pa"ments and
interest earned on the loans shall accrue to the Overseas Welfare Trust Fund.
The co:authors of the measure are Reps. 2sidro T. @ngab (Ard .istrict$ .avao &it")$
Thelma %lmario (-nd .istrict$ .avao Oriental)$ .akila &arlo &ua (#one .istrict$
Buirino)$ #eopoldo ataoil (-nd .istrict$ !angasinan)$ &elso #obregat (=st .istrict$
Camboanga &it")$ 3ariano !iamonte 4r. (!art" #ist$ % Teacher)$ &arlos !adilla (#one
.istrict$ /ueva 5i1ca"a)$ 3a. #ourdes %costa:%lba (=st .istrict$ ukidnon)$ Frederick
%bueg (-nd .istrict$ !alawan)$ !edro. %charon 4r. (=st .istrict$ +outh &otabato)$ /icasio
3. %liping 4r. (#one .istrict$ aguio &it")$ 3agnolia Rosa %ntonino:/adres ('th .istrict$
/ueva 6ci7a)$ Rose 3arie %renas (Ard .istrict$ !angasinan)$ Rodel atocabe (!art" #ist$
%ko icol)$ +ilvestre ello (!art" #ist$ = %!)$ %nthon" ravo (!art" #ist$ &OO!:
/%T&&O)$ /eri &olmenares (!art" #ist$ a"an 3una)$ %nthon" .el Rosario (=st
.istrict$ .avao .el /orte)$ #awrence #emuel Fortun (=st .istrict$ %gusan del /orte)$
0wendol"n 0arcia (Ard .istrict$ &ebu)$ %na &ristina 0o (-nd .istrict$ 2sabela)$ %gapito
0uanlao ( !art" #ist$ @T2#)$ 0erald %nthon" 0ullas (=st .istrict$ &ebu)$ Fernando
Hicap (!art" #ist$ %/%D!%W2+)$ #u1viminda 2lagan (!art" #ist$ 0abriela)$ 6velina
6scudero ( =st .istrict$ +orsogon)$ 3ark #landro 3endo1a ('th .istrict$ atangas)$ 6ric
Olivare1 (=st .istrict$ !arana?ue &it")$ 5ictor Ortega (=st .istrict$ #a @nion)$ #eah
!a?ui1 (!art" #ist$ %/0 /%R+)$ Terr" Ridon (!art" #ist$ Dabataan)$ Roman Romulo
(#one .istrict$ !asig &it")$ 6strellita +uansing (=st .istrict$ /ueva 6ci7a)$ %ngelina Tan
('th .istrict$ Bue1on)$ Randolph Ting (Ard .istrict$ &aga"an)$ 6ulogio 3agsa"sa"
(!art" #ist$ %56)$ %ntonio Tinio (!art" #ist$ %&T T6%&H6R+)$ 4uliette @" (-nd
.istrict$ 3isamis Oriental) and 5ictor ,u (=st .istrict$ Camboanga .el +ur). (A8) jc