Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House Bill nA986

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay ~ Villar

EXPLANATORY NOTE

Overseas Filipino Workers are not only called modern-day heroes, they are also economic
drivers of the country. According to the Bangko Sentral ng Pilipinas (BSP). Cash remittances sent
via the formal banking networks by overseas Filipino workers (OFWs) amounted to $25.76 billion
in 2015, up 4.6 percent from $24.63 billion in 2014. ‘These remittances continued to be a “major
driver of domestic demand.”

Last year, the total remittances accounted for 9.8 percent of gross domestic product (GDP)
and 8.3 percent of gross national income.

The number of overseas Filipino workers (OFW) being deployed to other countries has
been constantly increasing for the past 3 decades, as per Country Migration Report of the
International Organization for Migration (JOM),

According to the Philippine Overseas Employment Administration (POEA), there were a
total of 1,832,668 OF Ws in 2014 -1,430,842 land-based and 401,826 sea-based.

In recognition of their valuable contribution, this bill creating an OF W credit assistance
program is proposed. Under this bill, a prospective OF W who has a valid contract as certified by
the Philippine Overseas Employment Administration (POEA) may avail of a Fifty Thousand Peso
(P50,000.00) loan from the Overseas Worker Welfare Administration to defray the living expenses
of his family during the first month of his absence as well as other expenses incurred during his
pre-employment

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

Lies U- Vat
EMMELINE Y. AGLIPAY ~ VILLAR
Representative, DIWA Party-list

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRE
First Regular Session

House Bill NiI86

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay ~ Villar

AN ACT
ESTABLISHING A CREDIT ASSISTANCE PROGRAM
FOR OVERSEAS FILIPINO WORKERS

Be enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION I. Title. -This Act shall be known as the “Overseas Workers Credit Assistance
Act of 2016.”

SEC. 2. Declaration of Policies. ~ It is hereby declared a policy of the State to protect the
interest of the overseas workers by providing them access to credit facilities even before their
departure.

SEC, 3. Loans, —An overseas Filipino worker (OF W) with a valid employment contract
processed through a licensed recruitment and manning agency accredited by the Philippi
Overseas Employment Administration (POEA) may avail of a loan of not more than Fifty
Thousand Pesos (P50,000.00) from the Overseas Worker and Welfare Administration (OWWA)
for any of the following purposes: (a) to defray the living expenses of one’s family during the first
month of absence; and/or (b) to pay for recruitment expenses including placement fees,
documentation costs and plane tickets; Provided, that any member of the OFWs family not
otherwise disqualified by law shall be a co-borrower, and shall execute the necessary
documentation to that effect: Provided, further, That the loan shall be granted and released by the
OWWA upon proper evaluation and submission of the employment contract and plane ticket, duly
certified to in writing by the recruitment agency or direct hirer as to theit authenticity and properly
verified by the POEA. The aforementioned maximum amount of Fifty Thousand Pesos
(P50,000.00) specified herein may be increased by the OWWA, taking into account inflation and
other relevant factors, through a resolution duly approved by the OWWA Board of Trustees.

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The loan shall be entered into by and between the overseas worker-borrower and OWWA,
With the next-of-kin asa co-borrower. The loan shall be covered with a loan redemption insurance
from any private insurance provided duly registered with and accredited by the Insurance
Commission, the premium of which shall be paid by the applicant overseas worker-borrower.

SEC. 4, Accreditation of Banks as Payment Conduits, ~ The OWWA shall accredit as
many domestic or foreign banking institutions as possible which are duly authorized to do business
in the Philippines in order to serve the loan payment/amortization needs of overseas workers-
borrowers. It shall be the obligation of the overseas worker-borrower to remit the loan payment/
amortization regularly to OWWA through the banking institutions. The OWWA shall likewise
establish, within one (1) year from the effectivity of this Act, an online payment system wherein
the overseas worker-borrower may pay the loan amortization through the internet.

SEC. 5. Payment of Loan, ~ The loan shall be paid in twelve (12) equal monthly
installments at a preferred interest rate not to exceed six percent (6%) per annum

SEC. 6. Implementing Rules and Regulations. — The OWWA, 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 non-payment of
loans provided under this Act and the corresponding penalties that may be imposed, collection and
administration of loans, and other issues of significance relevant to this Act,

SEC. 7. Appropriation. ~The amount needed to implement the provisions of this Act shall
be appropriated out of the Overseas Workers Welfare Fund,

SEC. 8. Repealing Clause, — All laws or parts thereof, decrees, orders, rules and
regulations inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.

SEC. 9. Separability Clause. ~ If any part, section, or provision of this Act shall be held
invalid or unconstitutional, the rest of the provisions shall not be aflected thereby

SEC. 10. Effectivity. - This Act shall take effect fifteen (15) days from the date of
publication in the Official Gazette or in at least two (2) newspapers of geneval circulation

Approved,

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