Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 1300

Introduced by HONORABLE LUIS RAYMUND F. VILLAFUERTE, JR.

EXPLANATORY NOTE

The importance of the Overseas Filipino Workers (OFWS) for the
economic development of the Philippines is undeniable. According to Bangko
Sentral ng Pilipinas (3SP) Governor Amando Tetangco, personal remittances by
OFWs grew by 4 3% on the first quarter of the year 2016, which amounted to $7 2
billion "Furthermore, the BSP reported that for the first quarter of the year 2013,
cash remittances amounted to $3.6 billion - 4.4% higher than the recorded
amount on the same period last year.

The Philippine Statistics Authority (PSA) shows that there were
approximately a total of 2.447.000 OFWs in 2015 2,3378000 are contract workers
while 70,000 are non-contract workers. ° Four out of five OFWs choose to stay
within the Asian continent, with the Middle East serving as top destination (44%)
followed by Singapore and Hong Kong, * The largest segment of OFWs. 33.2%,
comprise of laborers and unskilled workers. with household service workers
topping the list of occupations.

This measure is being submitted in recognition of the valuable
contributions of OFWs by creating a credit assistance program for them. Under
this bill. a prospective OFW who has a valid contract as certified by the Philippine
Overseas Employment Administration (POEA) may avail of an eighty thousand
pesos 000.00) loan from the Overseas Worker Welfare Administration (OVVVVA)
to defray the living expenses of his family during the first few months of his
absence as well as other expenses incurred during his pre-employment including
placement fees, documentation costs and plane tickets.

This legislation is a counterpart policy measure authored in the Senate of
the Philippines by Senator Grace Poe

In view of the foregoing, the approval of this bill is earnestly sought

LUIS RAYMUND F. VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS

First Regular Session

HOUSE BILL No. 1300

Introduced by HONORABLE LUIS RAYMUND F. VILLAFUERTE, JR.

AN ACT ESTABLISHING A CREDIT ASSISTANCE PROGRAM FOR
OVERSEAS FILIPINO WORKERS

Be it enacted by the Senate and the House of Representatives of the Republic of
the Philippines in Congress assembled.

SECTION 1. Title - This Act shall be known as the "Overseas Filipino Workers Credit
Assistance Act of 2016"

SECTION 2. Declaration of Policies - Consistent with the State policy that the State
affirms labor as a primary economic force and that it shall protect the rights of workers and
promote their welfare, it is hereby declared that the government and its instrumentalities
must promote and carry out programs geared towards advancing the interest of the
Overseas Filipino Workers (OFWs) by providing them access to credit facilities even before
their departure.

SECTION 3. Loans - An overseas contract worker with a valid employment contract
as certified by the Philippine Overseas Employment Administration (POEA) may avail of a
loan of not more than Eighty Thousand

Pesos (P80,000.00) from the Overseas Worker and Welfare Administration (OMVA.
Provided, that any one of the member of his family not otherwise disqualified by law shali
participate in the loan as co-borrower, and execute necessary documentation to that effect.
Provided, further, that the loan shall be granted and released by the OVVVVA upon proper
submission of the following documents, duly certified to in writing by the recruitment agency
with corresponding authentication and properly certified/verified by the POEA

3.1. Employment Contract
3.2. Plane ticket and
3.3. Bank account

SECTION 4. Establishment of Bank Account - Overseas workers availing of the credit
assistance under this Act shall open a bank account in which payments for the loan shall be
made.

SECTION 5, Payment of Loan - The loan Shall be paid in twelve (12) equal monthly
installments or more but not exceeding twenty four (24) months at a preferred interest rate
not to exceed six percent (6%) per annum through the bank account to be established under
the immediately preceding Section, For the purpose, the applicant shall execute the
necessary authority for the bank to withhold the monthly loan amortization from his
remittances.


SECTION 6. [implementing Rules - The OVINVA, in consultation with organized
labor groups and the relevant sectors, shall issue rules and regulations for the effective
implementation of this Act. The IRR shall include provisions that will address nonpayment
of loans provided under this Act and the corresponding penalties that may be imposed,
collection and administration af loans, and other issues of significance relevant to this Act

SECTION 7, Appropriation - To carry out the purposes of this Act, there is hereby
appropriated, out of any funds in the National Treasury not otherwise appropriated, the sum
of Five Hundred Million Pesos. Thereafter, the appropriations for the OFW Credit Assistance
shall be included in the annual General Appropriations Act,

SECTION 8. Repealing Clause. - Any other provisions of law or rules and regulations
inconsistent to the provisions of this Act are hereby repealed, amended or modified
accordingly.

SECTION 9 Effectivity - This Act shall take effect fifteen (15) days after its complete

publication in the Official Gazette are in at least two (2) newspapers general circulation,
whichever comes earlier.

Approved.