THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
SENATE 
J?d 
~ N T R O D U C E D A H O N . Y T L L A R  
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EXPLANATORYNOTE 
Overseas Filipino Workers 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 thiat the government can 
give, including an exclusive credit assistance program as propose!d under this measure. 
The credit facilities under this bill begins even before the departure of the OFW. 
One who has a valid contract as certified by the POEA may avail of a Fifty Thousand 
Peso loan from the OWWA to defray the living expenses of his family during the first few 
months of his absence as well as other expenses incurred in his pre-employment. The 
payment shall be through bank transactions with simple and easy terms. 
In view of the foregoing, the approval of this bill is earnestly sought. 
MANNYVIL AR !I 


THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES } 
Second Regular Session 
SENATE 
A
I
 , 
_ -  
INTRODUCED BY HON 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 2005." 
SECTION 2. Declaration of Policies - It is hereby declined 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 contract worker with a valid contract through/from an 
accredited employment of the POEA may avail of a loan of not more than Fiffy 
Thousand Pesos (P50,OOO.OO) 
from the Overseas Worker and Welfare Administration 
(OWWA) to defray the living expenses of his family during the first 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. Provide, 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 in direct hirer as to their authenticity and 
properly certifiedherified by the POEA. 
a) Employment Contract 
h) Plane ticket; and 
c) Bank account 
The loan shall be entered into by and between the overseas workers and OWWA, with 
the next of kin as the guarantor. The loan shall he covered with loan redemption 


insurance from the Government Service Insurance System (GSIS), the premium of 
which shall he paid by the applicant overseas worker. 
SECTION 4. Establishment of Bank Account - Overseas workers availing of the loan 
mentioned in the preceding Section shall establish a bank account with any domestic or 
foreign banking institution duly authorized to do business in he Philippines, in the name 
of the overseas worker himself/herself andlor member of his immediate family 
designated as co-borrower to the loan wherein the proceeds of the loan shall be 
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 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 this purpose, applicant shall execute the necessary authority for the bank to 
withhold the monthly loan amortizations from his remittances. 
SECTION 6. Sanctions - 
Failure to pay the loan andlor violations of the terms imposed 
herein shall be sufficient ground to bar the defaulting overseas worker borrower from 
future overseas employment. 
SECTION 7. Implementing Rules - 
The OWWA shall issue rules and regulations for 
the effective implementation of this Act. 
SECTION 8. Appropriation - The amount needed to implement the provisions of this 
Act shall be appropriated out of the Overseas Welfare Fund. 
SFCTION 9. 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 10. Effectivity - This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in at least two (2) newspapers general circulation. 
Approved,