SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. B.1421 
Introduced by Senator Poe 
Explanatory Note 
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More than being referred to as modern-day heroes, 
the Overseas Filipino 
Workers (OFWs) are considered as a vital paJiner of Philippine development with their 
remittances contributing to the economy at around $24 billion per year. (World Bank, 
2012) 
In a span of four decades, the number of deployed OFWs has skyrocketed from 
36,035 in 1972 to an estimated 2.2 million in 2011. Four out of five OFWs choose to 
stay within the Asian continent, with fbe Middle East serving as top destination (44%) 
followed by Singapore and Hong Kong. The largest segment of OFWs, 32.7%, comprise 
of laborers and unskilled workers, with household service workers toppin? the list of 
occupations. The second largest group of OFWs are in the nursing profession. 
In recognition of the valuable contributions of OFWs, this bill is submitted. It 
creates an OFWs credit assistance program. Under this bill, a prospective OFW who has 
a valid contract as certified by the Philippine Overseas Employment Administration 
(POBA) may avail of a fifty thousand peso loan from the Overseas Worker Welfare 
Administration to defray the living expenses of his family during the tirst 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 
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First Regular Session 
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Introduced by Senator Poe 
AN ACT 
ESTABlLISHING 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 Filipino Workers 
Credit Assistance Act of 2013." 
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 
in.strumentalities must promote and CatTY out progrmns 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 (OWW A) to defray the living expenses of 
his family during the first three months of absence as well as recruitment expenses 
including placement fees, docnmentation costs and plane tickets. Provided, that anyone 
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. Provided, further, 
that the loan shall he granted and released by the OWW A 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 
credit assistance under this Act shall open a bank account in which payments for the loan 
shall be made. 
SECTION 5. Payment of Loan - The loan shall be paid in twelve (12) equal 
monthly installmellts 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 tile 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. 
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SECTION 6. Implementing Rules - The OWW A, 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 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, 
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