Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

‘THIRTEENTH CONGRESS
First Regular Session
1336

HOUSE BILL NO.

INTRODUCED BY HONORABLE RODRIGUEZ D. DADIVAS

EXPLANATORY NOTE

The Overseas Filipino Workers have time and again been’referred to and honored as the

heroes of our generation. This is primarily due to the million and one sacrifices they have
to endure in the search for social and economic redemption they have failed to achieve at
home.

It 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 uner
this measure.

The credit facilities under this bill 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 terms

In view of the foregoing, the approval of this billis-ea sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

THIRTEENTH CONGRESS
First Regular Session

1336

HOUSE BILL NO.

INTRODUCED BY HONORABLE RODRIGUEZ D. DADIVAS

AN ACT ESTABLISHING A CREDIT ASSISTANCE PROGRAM FOR
OVERSEAS 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: Workers Credit
Assistance Act of 2004.”

SECTION 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.

SECTION 3. Loans - An overseas contract worker wit a valid contract
through/from an accredited employment 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
minths 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


Bates

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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.

SECTION 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 duky authorized to do business in the Philippines, in the
name of the overseas worker himself/herself 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.

SECTION 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
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.

SECTION 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.

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

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

SECTION 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

SECTION 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,