Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL 8615

Introduced by: CONG. “KUYA” JOSE ANTONIO R. SY-ALVARADO

EXPLANATORY NOTE

Overseas Filipino Workers (OFWs), which we hail as our modern-day heroes, have been consistent
in making a huge contribution for the country’s economy. According to the Article published by
the London School of Economics and Political Science, on 2019, remittances of OFWs reached 30
Billion USD (1.56 Trillion PHP), or about 8% of the Philippines’ 377 Billion USD (19.52 Trillion
PHP).cconomy.

And with the COVID-19 pandemic bringing a significant portion of the global economy to a halt,
more than half million overseas Filipino workers (OFWs) were displaced while an estimated 1.1
million more were unable to resume or start working overseas since January 2020.

Article II, Section 18 of the 1987 Constitution provides that the State affirms labor as a primary
social economic force. It shall protect the rights of workers and promote their welfare.

This proposed bill aims to extend as much economic assistance as possible to our modern-day
heroes. With their families left without stable source of income and livelihood due to global
economic shutdown, they end up being economically vulnerable. Itis time for our government to
retum the favour by keeping OFWs and their families, whose remittances and service has kept the
country’s cconomy afloat cven in times of crises, alive and safe during this pandemic.

Thus, the immediate passage of this bill is earnestly sought.

CONG. “KUYA” JOSE ANTONIO R. SY-ALVARADO
Representative
First District of Bulacan


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No._8615

Introduced by: CONG. “KUYA” JOSE ANTONIO R. SY-ALVARADO

AN ACT
PROVIDING FOR A MORATORIUM .ON OFW LOANS PAYMENT DURING
PANDEMIC AND OTHER EMERGENCIES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled
SECTION 1. Title. - This Act shall be known as the “Lingkod Luwag para sa OFW Loans Act.”

SECTION 2. Declaration of Policy. It shall be the policy of the State to protect the rights of
workers and promote their welfare.

It is likewise the policy of the State to promote a just and dynamic social order that shall
ensure prosperity, promote full employment, a rising standard of living and an improved quality
of life-for all. In pursuit of this, the State shall endeavor to develop a program that will ensure-that
all of its citizens are equipped with or can readily access the necessary capital to pursue
opportunities and uplift their lives.

SECTION 3. Scope of Application. This Act shall cover pandemic and other kinds of
emergencies which are global and national scope.

SECTION 4. Coverage of Program. This Act shall apply to all kinds of loans of OFWs and their
immediate families. Moratorium on loans shall be granted by:

a) Banks;
‘b) Quasi-banks;

c) Non-stock savings and loan association;

d) Pawnshops;

¢) Cooperatives;

f) Financing Companies;

-g) Lending Companies;

h) Credit Card Companies;

i) Real Estate Developers;

j) Insurance Companies providing life insurance policies;

k) Entities providing in-house financing for goods and properties purchased;
1) Asset and Liabilities management companies;

m) And other financial institutions, public or private

SECTION 4. Moratorium on Loan Payments. There shall be a moratorium for the payment of
all existing, current and outstanding loans for the entire duration of the global pandemic, national
public health emergency and for 180 days thereafter from the time of the lifting or the state of
emergency as declared by the World Health Organization or by the President through the
recommendation of ATF, DOH, or NDRRMC as the case maybe.


SECTION 5. Eligibility for the Moratorium, To qualify for the moratorium under this Act, the
borrower must be:

An OFW; or
‘An immediate family of an OFW; and

¢. Has a good credit standing prior to the declaration of pandemic and State of calamity by
the World Health Organization and by the President

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SECTION 6. Implementing Rules and Regulations. Within sixty (60) days from the effectivity
of this Act, the Department of Finance, in consultation with the other relevant government agencies
and stakeholders, shall issue necessary rules and regulations to implement the provisions of this
Act.

SECTION 7. Separability Clause. If any provision of this Act is declared unconstitutional, the
same shall not affect the validity and effectivity of the other provisions hereof.

SECTION 8. Repealing Clause. All laws, decrees, orders, issuances or portion thereof, which are
inconsistent with the provisions of this Act are repealed or modified accordingly.

SECTION 9. Effectivity. This Act-Shall take effect fifteen (15) days after its publication in two

(2) newspapers of general ci

Approved,