Credit assistance for OFWs being worked out in Congress

BAGUIO CITY, Philippines – A credit assistance program for the country’s “new heroes” – overseas Filipino workers – is being worked out in Congress.

A measure that benefits millions of OFWs and their families is now in the pipeline via House Bill 4985, said Baguio Rep. Nicasio Aliping Jr., who is championing the measure.

HB 4985, an Act Establishing a Credit Assistance Program for Overseas Filipino Workers, was approved on third and final reading in the House. The measure seeks to provide credit assistance to OFWs even before they leave the country.

There are about 13.5 million OFWs with the bulk of them working in 13 countries. There are 3.5 million working in America, 1.2 million in Saudi Arabia, 931,500 in United Arab Emirates, 850,000 in Canada, 686,500 in Malaysia, 391,700 in Australia, 243,000 in Japan, 218,000 in the United Kingdom, 213,000 in Kuwait, 200,000 in Qatar, 195,000 in Hong Kong, 185,000 in Singapore and 170,000 in Italy.

Aliping said the proposal provides that an OFW can avail of a loan of not more than P50,000 from the Overseas Workers Welfare Administration (OWWA) to defray the living expenses of his or her family during the first months of absence.

“The loan can also be used to pay for recruitment expenses including placement fees, documentation costs and plane tickets,” he said.

“The loan shall be covered with loan Redemption Insurance from any private insurance provider duly registered and accredited by the Insurance Commission,” Aliping Jr. said, adding “the loan would be paid in 12 monthly installments at a preferred interest rate of not more than six percent per annum.”