HOUSE OF REPRESENTATIVES:

RECEIVED
pare.S0 JUN 2013
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Republic of the Philippines. nv Tee
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila REGISTRATION UNIT
BILLS AND INDEX SERVICE

SEVENTEENTH CONGRES:
First Regular Session

HOUSE BILL No.__ 482

Introduced by Honorable MARK A. VILLAR

AN ACT
ESTABLISHING A CREDIT ASSISTANCE PROGRAM
FOR OVERSEAS FILIPINO WORKERS

EXPLANATORY NOTE

Overseas Filipino Workers are not only called modern-day heroes, they are also
economic drivers of the country. According to the Bangko Sentral ng Pilipinas (BSP),
Cash remittances sent via the formal banking networks by overseas Filipino workers
(OFWs) amounted to $25.76 billion in 2015, up 4.6 percent from $24.63 billion in 2014.
These remittances continued to be a “major driver of domestic demand.”

Last year, the total remittances accounted for 9.8 percent of gross domestic
product (GDP) and 8.3 percent of gross national income.

The number of overseas Filipino workers (OFW) being deployed to other
countries has been constantly increasing for the past 3 decades, as per Country
Migration Report of the International Organization for Migration (IOM).

According to the Philippine Overseas Employment Administration (POEA), there
were a total of 1,832,668 OFWs in 2014 — 1,430,842 land-based and 401,826 sea-
based.


In recognition of their valuable contribution, this bill creating an OFWs credit
assistance program is proposed. 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 (P50,000.00) loan from the Overseas Worker
Welfare Administration to defray the living expenses of his family during the first month
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.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House BILLNO.__482

Introduced by Honorable MARK A. VILLAR

AN ACT
ESTABLISHING A CREDIT ASSISTANCE PROGRAM
FOR OVERSEAS FILIPINO 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 2016."

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 Filipino worker (OFW) with a valid
employment contract processed through a licensed recruitment and manning agency
accredited 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) for any of the following purposes: (a) to defray the
living expenses of one’s family during the first month of absence; and/or (b) to pay for
recruitment expenses including placement fees, documentation costs and plane tickets
Provided, that any member of the OFW's family not otherwise disqualified by law shall


be @ co-borrower, and shall execute the necessary documentation to that effect:
Provided, further, That the loan shall be granted and released by the OWWA upon
proper evaluation and submission of the employment contract and plane ticket, duly
certified to in writing by the recruitment agency or direct hirer as to their authenticity
and properly verified by the POEA. The aforementioned maximum amount of Fifty
Thousand Pesos (P50,000.00) specified herein may be increased by the OWWA, taking
into account inflation and other relevant factors, through a Resolution duly approved by
the OWWA Board of Trustees.

The loan shall be entered into by and between the overseas worker-borrower
and OWWA, with the next-of-kin as a co-borrower. The loan shall be covered with a
loan redemption insurance from any private insurance provider duly registered with and
accredited by the Insurance Commission, the premium of which shall be paid by the
applicant overseas worker-borrower.

SECTION 4. Accreditation of Banks as Payment Conduits. -The OWWVA shall
accredit as many domestic or foreign banking institutions as possible which are duly
authorized to do business in the Philippines in order to serve the loan
payment/amortization needs of overseas workers-borrowers. It shall be the obligation of
the overseas worker-borrower to remit the loan payment/amortization regularly to
OWWA through the banking institutions. The OWWA shall likewise establish, within one
(1) year from the effectivity of this Act, an online payment system wherein the overseas
worker-borrower may pay the loan amortization through the internet.

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.

SECTION 6. Implementing Rules and Regulations. - 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 Workers 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, whichever comes earlier.

Approved,