FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. 1045 
Introduced by Senator Manny Villar 
EXPLANATORY NOTE 
1 0 J!l!. -/!l P.c:ol 
Overseas Filipino Workers (OFWs) have time and again been referred to 
and honored as our modern day heroes. 
It 
i~ 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. 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SEN AT E
104S
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Se nate B ill No . ....::::..::....:. 
Introduced by Senator Manny 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 2010." 
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 anyone of the member of 
his family not otherwise disquafified 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 
certified/verified 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. 
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• 
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 OVVWA, 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 nonpayment 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, 
2