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MANILA, Philippines -- A bill that seeks to help overseas Filipino workers (OFWs) cope with pre-departure expenses such as placement fees and defray their families? living expenses has been approved on third and final reading by the House of Representatives.
"It is but fitting to extend to the Pinoy OCWs all the assistance the government can give. This should include an exclusive credit assistance program to them as proposed under this measure," said Aurora Representative Juan Edgardo Angara, principal author of House Bill 161 or "An Act Establishing a Credit Assistance Program for
Overseas Workers."
Under the bill, an overseas worker with a valid contract certified by the Philippine Overseas Employment Administration (POEA) may avail of a P50,000 loan from the Overseas Worker and Welfare Administration (OWWA) to defray the living expenses of his family during the first few months of his absence as well as other expenses incurred in his pre-employment.
The payment shall be through bank transactions with simple and easy loan terms.
The bank account will be in the name of the OFW and/or a member of his immediate family as co-borrower, and to which the monthly remittances of salaries abroad shall be deposited and monthly payments on the loan shall be made.
The measure provides that the loan will be granted and released to the contract worker by the OWWA upon proper submission of an employment contract, plane ticket, bank account duly certified in writing by the recruitment or hiring agency.
The documents should be properly certified by the POEA.
The loan shall be covered with loan redemption insurance from the Government Service Insurance System (GSIS), the premium of which will be paid by the applicant OFW.
The loan will be paid in12 equal monthly installments at a preferred interest rate not to exceed six percent (6%) per annum. The OFW will execute the necessary authority for the bank to withhold the monthly loan amortizations from his remittances. Failure to pay the loan and or any violation of the terms of agreement will be sufficient ground to bar the defaulting OFW-borrower from future overseas employment.
OWWA in May this year suspended its pre-departure loans program after incurring losses estimated at P70 million.
Labor Secretary Marianito Roque said that the Department of Labor an Employment had originally allocated P100 million for the program.
