FOURTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
OF THE PHILIPPINES 
S E N A T E  
S. B. 2054 
Introduced by Senator Villar 
EXPLANATORY NOTE 
Overseas Filipino Workers (Oms) have time and again been referred to and 
honored as our modern day heroes. 
It is but fitting to extend to our OFWs all the assistance that the government 
can give, including an exclusive credit assistance program as proposed under this 
measure. 
The credit facilities envisioned under this legislation is expansive. Under this 
bill, a prospective OFW who has a valid contract as certified by the Philippine 
Overseas Employment Administration (POEA) may avail of a fifty thousand peso 
loan from the Overseas Worker Welfare Administration 
to defray the living 
expenses of his family during the first few months 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. 


FOURTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
S E N A T E  
S.B. 205 
Introduced by Senator Villar 
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 2008." 
SECTION 2. Declaration of Policies - Consistent with the State policy that the 
State affirms labor as a primary economic force and that it shall protect the rights of 
workers and promote their welfare, it is hereby declared that the government and its 
instrumentalities must promote and carry out programs geared towards advancing the 
interest of the Overseas Filipino Workers (OFWs) by providing them access to credit 
facilities even before their departure.. 
SECTION 3. Loans - An overseas contract worker with a valid employment 
contract as certified 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 Worker and Welfare Administration (OWWA) to defray the living expenses of 
his family during the first three 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 with corresponding authentication and properly certifiedlverified by the POEA. 
3.1. 
Employment Contract 
3.2. 
Plane ticket; and 
3.3. 
Bank account 
SECTION 4. Establishment of Bank Account - Overseas workers availing of the 


released and credited, and where monthly remittances of salaries and wages abroad 
payments on the loan shall be made. It shall be the obligation of the overseas worker- 
borrower to remit his earnings abroad only I through the said bank account. 
SECTION 5. Payment of Loan - The loan shall be paid in twelve (12) equal 
monthly installments or more but not exceeding twenty four (24) months 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 the purpose, the applicant shall execute the necessary authority for the bank 
to withhold the monthly loan amortization from his remittances. 
SECTION 6. Implementing Rules - 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. 
SECTION 7. Appropriation - The amount needed to implement the provisions of 
this Act shall be appropriated out of the Overseas Welfare Fund. 
SECTION 8. 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 9. Effectivity - This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette or in at least two (2) newspapers general 
circulation. 
Approved,