House approves credit assistance for OFWs

Manila, Philippines - The House of Representatives has approved on third and final reading a measure establishing a credit assistance program for overseas Filipino workers (OFWs).

Under House Bill 4539 or the Overseas Workers Credit Assistance Act of 2011, OFWs can avail of credit assistance provided they have a valid employment contract processed through a licensed recruitment agency accredited by the Philippine Overseas Employment Administration (POEA).

OFWs may avail of a loan not more than P50,000 from the Overseas Worker and Welfare Administration (OWWA) to defray the living expenses of his or her family during the first months of absence, or to pay for recruitment expenses including placement fees, documentation costs and plane tickets.

The co-authors of the bill are Reps. Ignacio Arroyo (Negros Occidental), Juan Edgardo Angara (Aurora), Augusto Syjuco (Iloilo), Walden Bello (Akbayan), Neil Benedict Montejo (An Waray), Emmeline Aglipay (DIWA), Maria Milagros Magsaysay (Zambales), Lani Mercado-Revilla (Cavite), Tobias Reynald Tiangco (Navotas), Mark Villar (Las Piñas City), Emmanuel Pacquiao (Sarangani), Fatima Aliah Dimaporo (Lanao del Norte), Carlos Padilla (Nueva Vizcaya) and Leopoldo Bataoil (Pangasinan).

Angara said the measure seeks to alleviate the financial plight of the overseas workers and their families during the first few months of the former’s absence.

 “This is in recognition of the million and one sacrifices that they have to endure in the search for social and economic redemption which they have failed to achieve at home,” he said.

Syjuco said OFWs are dubbed as the “Bagong Bayani” for their unspoken heroic deeds in nation-building and their relentless hard work to cater to the needs of their families left in the country.

“The State shall promote the welfare and interests of the migrant workers and their families. It is the declared policy of the State to protect the interest of the overseas workers by providing them access to credit facilities even before their departure,” Syjuco said.

Arroyo said it is but fitting to extend to the OFWs all the assistance that the government can give.

It requires the OWWA to establish, within one year, an online payment system wherein the OFW-borrower may pay the loan amortization through the Internet.

The bill obliges the OFW-borrower to regularly remit the loan payment or amortization through the OWWA accredited banking institutions. The loan shall be paid in 12 equal monthly installments at a preferred interest rate of not more than six percent per annum.

Furthermore, the bill prohibits the issuance of the Overseas Employment Certificate (OEC) and any other exit permit/clearance to work abroad to an OFW-borrower that has been unable to comply with the terms of the loan.