Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City

16" CONGRESS
First Regular Session

House BillNo__ 1373

Introduced by HON. JUAN “JOHNNY” R. REVILLA

Explanatory Note

Often referred to as the “Bagong Bayani” of our country, our Overseas Filipino Workers
have sacrificed and endured so much so that they can uplift their family’s socio-economic
condition as well as contribute in the development of our country. It is then but fitting that all the
necessary assistance be afforded to this sector.

The credit assistance that is being proposed under this bill should take care of the initial
social and economic needs of the families of the OFW as he or she leaves to work abroad, The
OWWA is mandated to extend assistance in the form of soft loans to the OF W’s family in order to
defray some of the expenses of the family as the OFW has not yet adjusted abroad. Payment of
the loans should allow the easiest terms as possible.

In view ofthe foregoing, the swift passage of this bill is sought —_

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HON. JUAN “JOHNNY” R. REVILLA
OFW Family Party List



Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

16" CONGRESS
First Regular Session

House Bill No._1373

Introduced by HON. JUAN “JOHNNY” R. REVILLA

AN ACT
INSTITUTING A CREDIT ASSISTANCE PROGRAM FOR OVERSEAS FILIPINO WORKERS.

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title. - This Act shall be known as the “OF W Credit Assistance Act of 2013.”

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to adopt measures
‘that ensure the welfare of Overseas Filipino Workers by providing them accessible credit assistance
facilities in the initial term of their contract.

SEC. 3. Objectives of the Act. - This Act shall have the following objectives:

(a) To ensure the stability of the OFW family’s social and economic welfare as the OF W leaves to
work overseas;

(b) To promote the interests, comfort, security and well-being of the OF W family’s life in the first
few months of his deployment abroad.

SEC. 4. Loan Assistance. - The Overseas Filipino Workers with an existing and valid contract
from a POEA accredited employment agency can avail of a loan of not more than Fifty Thousand Pesos
(P 50,000.00) from the Overseas Worker and Welfare Administration (OW WA) to initially settle whatever
expenses the OF W family may incur in the preliminary period that the OF W is abroad. The loan may also
be used to defray the recruitment expenses including the placement fees, documentation expenses and
travel tickets; Provided that, any immediate member of the OF W’s family not otherwise disqualified by
Jaw can be part of the loan as a co-borrower, and execute the necessary documentation on the said loan;
Provided further, that the loan shall be approved and released by the OWWA upon the completion and
submission of the following documents duly certified by the recruitment agency or direct employer as to
their genuineness and validity and verified by the POEA:

1. Employment Contract
2. Plane Ticket; and
3. Bank Account

To this end, the loan contract shall be entered to by and between the overseas worker and OWWA
with the next of kin as a guarantor. The loan shall be covered with a loan redemption insurance from the


Social Security System (SSS) or the Government Service Insurance System (GSIS), the premium of
which shall be paid by the applicant overseas worker.

SEC. 5. Establishment of a Bank Account. - The Overseas Worker that availed of a credit
assistance mentioned in Section 4 shall open a bank account with any fomestic or foreign banking
institution duly authorized to do business in the Philippines, in the name of the Overseas Filipino Worker
and/or member of his immediate family designated as co-borrower to the loan wherein the proceeds of the
loan shall be released and credited, and where monthly remittances of salaries and compensation abroad
and payments on the loan shall be made. It shall be the obligation of the Overseas Filipino
Worker/Borrower to remit his/her earings abroad only through the said bank account.

SEC. 6. Payment of Loan. - The loan shall be paid in Twenty-Four (24) equal monthly
installments at a preferred interest rate not to exceed three and a half percent (3.5%) per annum through
the bank account to be established under the immediately preceding section. For this purpose, the OFW
shall execute the necessary authority for the bank to withhold the monthly loan amortization from his his,
remittances.

SEC. 7, Sanetions. - Failure to pay the loan and/or violations of the terms imposed herein shall be
sufficient ground to bar the defaulting Overseas Filipino Worker/Borrower from future credit assistance.

SEC. 8. Implementing Rules. ~ The OWWA shall issue rules and regulations for the effective
implementation of this Act.

SEC. 9. Funding. - The amount needed to implement the provisions of this Act shall be
appropriated out of the Overseas welfare Fund.

SEC. 10. Repealing Clause. — Any other provisions of law or rules and regulations inconsistent
with the provisions of this Act are hereby repealed, amended or modified accordingly.

SEC. 11. Effe . ~ This Act shall take effect fifteen (15) days) after its publication in the
Official Gazette or in at least two (2) newspapers of general circulation.

Approved,