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

NINETEENTH CONGRESS
First Regular Session

House Bill No. 385

INTRODUCED BY REPRESENTATIVE MARISSA “DEL MAR” P. MAGSINO

AN ACT
ESTABLISHING A CREDIT ASSISTANCE PROGRAM
FOR OVERSEAS FILIPINO WORKERS,

EXPLANATORY NOTE

It cannot be overly stressed how important the role Overseas Filipino Workers
(OFWs) play in the shaping of the country’s economy. In 2016, the Philippine Statistics
Authority prepared a survey on OFWs who worked abroad. It estimated that more than
two (2) million Filipinos have worked abroad in that year.

Even as the world was reeling from the pandemic, cash remittances from OFWs
hit record high in 2021. The Bangko Sentral ng Pilipinas (BSP) releaseddata that showed
that cash remittances coursed through banks rose by 5.1% to $31.418 billion in 2021
from $29.903 billion in 2020. Remittances from the Filipinos in the Americas (7.1%),
Europe (5.5%), Asia (4.5%), and the Middle East (0.7%) increased in 2021, even as the
pandemic continued to affect economies, the BSP said.

The remittances of OFWs are important especially for developing countries like
the Philippines because they provide access to resources for the Government which they
use in providing essential services and programs to the people. They do not only enrich
the OFWs' families, but as well as the nation.

Indeed, OFWs have contributed immensely to the Philippines. For this reason,
the least that we can do to repay them is to craft programs that would allow access to
services more easily and without the rigorous processes which are laden with
bureaucratic runarounds. For instance, OFWs find it difficult to avail of programs which
their local counterparts could easily avail of. This includes availing loans from banks —
who in turn demand from them tons of paper works and requirements. Worse, the
nature of their employment, which ironically is also the reason why they have been
deemed as modern-day heroes, is the very reason why banks usually deny their loan

requests among others.


Under this measure, qualified OFWs are allowed to avail of a loan of not more
than Fifty Thousand Pesos (Php 50, 000.00) from the Department of Migrant Workers
to defray the living expenses of their families during the first three (3) months of
absences as well as recruitment expenses, including placement fees, documentation
costs and plane tickets. What would have otherwise been a difficult for them to do, now

this law aims to simplify.

It is not enough that we acknowledge that contributions of OFWs to the country.
Word without corresponding action is nothing. In recognizing their immense role in our
economy, we must respond to their needs to repay their sacrifices,

In view of the foregoing, the approval of this bill is earnestly sought.

wan fel Mog,



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

NINETEENTH CONGRESS
First Regular Session

365

House Bill No.

INTRODUCED BY REPRESENTATIVE MARISSA “DEL MAR” P. MAGSINO-

AN ACT
ESTABLISHING A CREDIT ASSISTANCE PROGRAM
FOR OVERSEAS FILIPINO WORKERS

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

Section 1. Short Title.— This Act shall be known as the "Overseas Filipino
Workers Credit Assistance Act of 2022."

Sec. 2. Declaration of Policy. 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 and/or deployment.

Sec. 3. Loans.— An overseas contract worker with a valid employment contract as
certified by the Philippine Overseas Employment Administration (POEA) may avail of a
Joan of not more than Fifty Thousand Pesos (Php 50,000.00) from the Overseas Worker
and Welfare Administration (OWWA) to defray the living expenses of his family during
the first three (3) months of absence as well as recruitment expenses including
placement fees, documentation costs and plane tickets. Provided, that any one of the
members 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 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:

(a) Employment Contract;
(b) Plane ticket; and

(© Bank account.


Sec. 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.

See. 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.

Sec. 6. Implementing Rules. - 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 Implementing Rules and Regulations 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.

Sec. 7. Appropriation. - The amount needed to implement the provisions of this
Act shall be appropriated out of the Overseas Workers Welfare Fund.

Sec. 8. Repealing Clause. - Any other provisions of law or rules and 24
regulations inconsistent to the provisions of this Act are hereby repealed, amended, or
modified accordingly

Approved,