SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
. First Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. 507 
"13 
JUL -8 iF):O 7 
Introduced by Senator Cynthia Villar 
EXPLANATORY NOTE 
Overseas Filipino Workers (OFWs) 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 
~~~~ 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
'13 
JUL -8 AD:07 
SENATE 
Senate Bill No. 507 
BV:_t-
Introduced by Senator Cynthia 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: 
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SECTION 1. Title - This Act shall be known as the "'Overseas Workers Credit 
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Assistance Act." 
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SECTION 2. Declaration of Policies - Consistent with the State policy that the 
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State affirms labor as a primary economic force and that it shall protect the rights of 
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workers and promote their welfare, it is hereby declared that the government and its 
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instrumentalities must promote and carry out programs geared towards advancing the 
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interest of the Overseas Filipino Workers (OFWs) by providing them access to credit 
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facilities even before their departure. 
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SECTION 3. Loans 7 An overseas contract worker with a valid employment 
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contract as certified by the Philippine Overseas Employment Administration (POEA) 
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may avail of a loan of not more than Fifty Thousand Pesos (PSO, 000.00) from the 
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Overseas Worker and Welfare Administration (OWWA) to defray the living expenses of 
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his family during the first three months of absence as well as recruitment expenses 
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.including placement fees, documentation costs and plane tickets. Provided, that any 
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one of the member of his family not otherwise disqualified by law shall participate in the 
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loan as co-borrower, and execute necessary documentation to that effect. Provided, 
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further, that the loan shall be granted and released by the OWWA upon proper 
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submission of the following ,documents, duly certified to in writing by the recruitment 
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agency with corresponding a:uthentication and properly certified/verified by the POEA. 
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3.1. Employment Contract 
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3.2. Plane ticket; and 
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3.3. Bank account 
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SECTION 4. Establishment of Bank Account - Overseas workers availing of tile 
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released and credited, and where monthly remittances of salaries and wages abroad 
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payments on the loan shall be made. It shall be the obligation of the overseas worker-
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borrower to remit his earnings abroad only I through the said bank account. 
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SECTION 5. Payment of Loan - The' loan .shall be paid in twelve (12) equal 
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monthly installments or more but not exceeding twenty four (24) months at a preferred 
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interest rate not to exceed six percent (6%) per annum through the bank account to be 
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established under the immediately preceding Section. For the purpose, the applicant 
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shall execute the necessary authority for the bank to withhold the monthly loan 
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amortization from his remittances, 
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SECTION 6, Implementing Rules - The OWWA, in consultation with organized 
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labor groups and the relevant sectors, shall issue rules and regulations for the effective 
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implementation of this Act The IRR shall include provisions that will address 
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nonpayment of loans provided under this Act and the corresponding penalties that may 
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be imposed, collection and administration of loans, and other issues of significance 
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relevant to this Act 
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SECTION 7, Appropriation - The amount needed to implement the provisions of 
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this Act shall be appropriated out of the Overseas Welfare Fund, 
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SECTION 8, Repealing Clause, - Any other provisions of law or rules and 
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regulations inconsistent to the provisions of this Act are hereby repealed, amended or 
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modified accordingly, 
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SECTION 9, Effectivity - This Act shall take effect fifteen (15) days after its 
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complete publication in the bfficial Gazette or in at least two (2) newspapers general 
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circulation, 
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Approved, 
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