Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

FIFTEENTH CONGRESS,

First Regular Session

pal 450
H.B.No.

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA

EXPLANATORY NOTE

The Overseas Filipino Workers have time and again been referred to as the heroes of
our generation. This is primarily due to the million and one sacrifices that they have to endure in
the search for social and economic redemption they have failed to achieve at home.

't is but fitting to extend to the Pinoy OCW all the assistance that the government can
give. This should include an exclusive credit assistance program as proposed under this
measure

The credit facilities under this bills starts even before the departure of the OFW. One
who has a valid contract as certified by the POEA may avail of a Fifty Thousand Pesos loan
from the 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.

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

YZ = et
JUAN EDGARDO “SONNY” M. ANGARA
Representative

Lone District, Province of Aurora


FIFTEENTH CONGRESS OF THE —).
REPUBLIC OF THE PHILIPPINES —)
First Regular Session )

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

AN ACT
ESTABLISHING A CREDIT ASSISTANCE PROGRAM
FOR OVERSEAS WORKERS

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

SECTION 1. Title. This Act shall be known as the “Overseas Workers Credit
Assistance Act of 2010”.

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 contract worker with @ valid contract through/from an
accredited employment agency of the POEA may avail of a loan of not more than Fifty
Thousand pesos (P50,000.00) from the Overseas Worker and Welfare Administration (OWWA)
to defray the living expenses of his family during the first months of absence as well as
recruitment expenses including placement fees, documentation costs and plane tickets:
Provided, That any one of the member of his family not otherwise disqualified by law shall
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 OWWA upon proper
submission of the following documents, duly certified to in writing by the recruitment agency or
direct hirer as to their authenticity and properly certified/verified by the POEA

(a) Employment contract

(b) Plane ticket; and

(c Bank Account

The loan shall be entered into by and between the overseas workers and OWWA, with
the next of kin as the guarantor. The loan shall be covered with loan redemption insurance from
the Government Service Insurance system (GSIS), the premium of which shall be paid by the
applicant overseas worker.

SEC. 4. Establishment of Bank Account. Overseas workers availing of the loan
mentioned in the preceding section shall establish a bank account with any domestic or foreign
banking institution duly authorized to do business in the Philippines, in the name of the overseas

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worker himself/nerself 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 wages abroad and payments on the loan shall be made. It shall be
the obligation of the overseas worker-borrower to remit his earnings abroad only through the
said bank account.

SEC. 5. Payment of Loan. The loan shall be paid in twelve (12) equal monthly
instalments 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 this purpose,
applicant shall execute the necessary authority for the bank to withhold the monthly loan
amortizations from his remittances,

SEC. 6. Sanctions. Failure to pay the loan and/or violations of the terms imposed herein
shall be sufficient ground to bar the defaulting overseas worker-borrower from future overseas
employment

SEC. 7. Implementing Rules. The OWWA shall issue rules and regulations for the
effective implementation of this Act.

SEC. 8. Appropriation. The amount needed to implement the provisions of this Act
shall be appropriated out of the Overseas Welfare Fund.

SEC. 9. 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.

SEC. 10. Effectivity. 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,