NINETEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES _ )
First Regular Session )

HOUSE OF REPRESENTATIVES

1188

House Bill No.

Introduced by Representative Christian Tell A. Yap

EXPLANATORY NOTE

Overseas Filipino Workers (OFWs) are the modern-day heroes of our nation. They leave the
country in search for better-paying jobs in foreign lands primarily to provide for their families they
leave behind and to improve their quality of life, However, oftentimes, OFW families are compelled

to borrow money to pay for the expenses of their loved ones” departure.

According to the latest data as of March 7, 2022 from the Philippine Statistics Authority, 1.77
million Overseas Filipino Employees (OFWs) or Filipino workers are working overseas during the
period of April to September 2020. Therefore, ensuring the protection and security of all our OF Ws,
documented and undocumented, are not only necessary for their safety as citizens, but also to sustain

the growth of our national economy.

Pursuant to the mandate of the State to protect all its citizens, including the families of OFW
they left behind, Republic Act No. 8042 or the Migrant Workers and Overseas Filipinos Act of 1995
was enacted, One of the objectives of this law is to provide for the families of currently employed
OFWs to avail if the Family Assistance Loan from the Overseas Worker Welfare Administration
(OWWA) in cases of emergency situations. However, this law omits the initial stages of OFW
employment wherein families may suffer from bearing the cost of their living expenses in the absence

of their OFW relative.

This proposed measure seeks to provide a credit assistance program to capacitate the families
of OFW left behind to pay for their living expenses. This bill gives a prospective OF W who has a valid
contract as certified by the Philippine Overseas Employment Administration (POEA) the opportunity
to avail of the fifty thousand pesos (P50,000) loan from the OWWA to shoulder the living expenses
of his/her family during the initial period of the latter's overseas employment. Adequate safeguards in
the fulfillment of the loan obligation and imposition of penalties for erring government officials are

further established under this measure.


In view of the foregoing reasons, the approval of the measure is egrnestly sought

CuEAy LL A. YAP
Represenfatiyé, 2nd District of Tarlac


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NINETEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES _ )
First Regular Session )
HOUSE OF REPRESENTATIVES

1188

House Bill No.

Introduced by Representative Christian Tell A. Yap

AN ACT
ESTABLISHING 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 "Overseas Workers Credit

Assistance Act."

Sec. 2. Declaration of Policy. — \t 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 (OFW) with a valid employment contract
processed through a licensed recruitment and manning agency accredited by the Philippine
Overseas Employment Administration (POEA) may avail of a loan of not more than fifty
thousand pesos (P50,000.00) from the Overseas Workers Welfare Administration (OWWA) for
any of the following purposes:
(a) To defray the living expenses of one’s family during the first months of absence;
and/or
(b) To pay for recruitment expenses including placement fees, documentation costs and
plane tickets: Provided, That any member of the OFW’s 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 their authenticity and properly verified by the POEA. The
aforementioned maximum amount of fifty thousand pesos (PS0,000,00) specified


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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.

The loan shall be entered into by and between the overseas worker-borrower
and the OWWA, with the next-of-kin as a co-borrower. The loan shall be covered
with a loan redemption insurance from any private insurance provider 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 the OWWA through the banking institutions. The OWWA
shall likewise establish, within one (1) year afier the effectivity of this Act, an on-line 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

See. 6. Loan Payment Assurance Mechanisms, ~ Failure to pay the loan and/or any
violation of the terms imposed upon the loan shall be sufficient ground for the POEA and all its
offices, including its deputized/accredited private entities and the Philippine Overseas Labor
Offices (POLOs), to withhold the issuance of the Overseas Employment Certificate (OEC) and
any other exit permit/clearance to work abroad to the overseas worker-borrower concerned
unless

(a) The overseas worker-borrower agrees to the restructuring of the loan, and thereupon

pays the first installment on the said restructuring, as duly certified by the OWWA,
and, together with this restructuring, the overseas worker-borrower justifies in writing
the cause for the failure to pay the balance due in connection with the loan; or

(b) The overseas worker-borrower is able to pay in full, as duly certified by the OWWA,

whatever balance is due in connection with the loan

The certification of the OWWA account officer concerned indicating therein the
just cause/reason for the failure to pay, duly attested to by the said account officer's
immediate supervisor, shall serve as proof of just cause/reason. This certification and
all other certifications mentioned in this section may be issued electronically, through
the internet, with the electronic signatures of the persons executing and/or attesting to

the said certifications and other authenticating safeguards.


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See. 7. Loan Verification. — For purposes of faster loan verification and/or authentication
and to facilitate the OWWA’s administration of this Credit Assistance Program, the Balik-
Manggagawa Processing Center, Regional Offices and Labor Assistance Centers (LACS) of the
POEA, all POLOs abroad, all OWWA offices in the Philippines and abroad, and all other
concemed government agencies/offices and all licensed recruitment and manning agencies
deputized/accredited by the POEA to issue OECs and other exit permits/clearances to work
abroad, shall coordinate closely and regularly with the OWWA using all available means of
verifiable and properly protected communications including, but not limited to, at least one (1)
dedicated, real-time and interactive website to be maintained and regularly updated on a twenty-
four (24)-hour-a-day, seven (7)-day-a-week (24/7) basis by the OWWA

See. 8. Prohibited Acts and Penalties. — Any government official and/or employee who

issues an OEC and/or an exit permit/clearance to any overseas worker-borrower in violation of

any provision of this Act shall suffer the penalty of sixty (60)-day suspension without pay for the

first offense and dismissal from the service with a five (5)-year disqualification to hold any
public office for the second offense

Any private entity which issues an OEC and/or an exit permiv/clearance to any overseas
worker-borrower in violation of any provision of this Act shall suffer the penalty of sixty (60)-
day suspension of its license or accreditation for the first offense and permanent cancellation of

license or accreditation for the second offense.

See. 9, Additional Personnel for the QWWA. — To ensure the proper implementation of
this Act, the OWWA

skills, qualification and experience in bookkeeping, accounting, information technology. and

hereby authorized to hire additional personnel who possess the necessary

credit administration, including, but not limited to, the areas of evaluation of loan applications,

credit investigation, verification, authentication, and collection.

Sec. 10. Funding. - The amount needed by the OWWA to implement the Credit
Assistance Program for OFWs shall be charged against the Overseas Welfare Trust Fund
Provided, That all payments and interests earned on the loans shall accrue to the Overseas
Welfare Trust Fund.

The funding requirement of other agencies/offices charged to assist the OWWA in

implementing the program shall be included in the annual General Appropriations Act

Sec. 11. Implementing Rules and Regulations. ~ The OWWA, in consultation with the
Senate Committee on Labor and Employment and the House Committee on Overseas Workers
Affairs, shall, within sixty (60) days after the effectivity of this Act, issue the necessary rules and

regulations for its effective implementation.


Sec. 12. Separability Clause. - If, for any reason, any section or provision of this Act is
held unconstitutional or invalid, the other sections or provisions hereof shall not be affected

thereby

Sec, 13, Repealing Clause. - All laws, decrees, executive orders, proclamations, rules
and regulations and other issuances or parts thereof, inconsistent with the provisions of this Act

are hereby repealed or modified accordingly

Sec. 14. Effectivity Clause. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or two (2) newspaper of general circulation

Approved,