House approves credit assistance bill for OFWs

(NewDesignWorld Press Center) – The House of Representatives has passed on third and final reading a measure establishing a credit assistance program for overseas workers (OFWs).

Under House Bill 4539, OFWs can avail of credit assistance provided they have a valid employment contract processed through a licensed recruitment agency accredited by the Philippine Overseas Employment Administration (POEA).

Under the bill to be known as the “Overseas Workers Credit Assistance Act of 2011,” OFWs may avail of a loan not more than P50,000 from the Overseas Worker and Welfare Administration (OWWA) to defray the living expenses of his family during the first months of absence or to pay for recruitment expenses including placement fees, documentation costs and plane tickets.

Rep. Juan Edgardo Angara (Lone District, Aurora), an author of the bill, said the measure seeks to alleviate the financial plight of the overseas workers and their families during the first few months of the former’s absence.

“This is in recognition of the million and one sacrifices that they have to endure in the search for social and economic redemption which they have failed to achieve at home,” Angara said.

Rep. Augusto Syjuco (2nd District, Iloilo), another author of the bill, said OFWs are dubbed as the “Bagong Bayani” for their unspoken heroic deeds in nation-building and their relentless hard work to cater to the needs of their families left in the country.

“The State shall promote the welfare and interests of the migrant workers and their families. It is the declared policy of the State to protect the interest of the overseas workers by providing them access to credit facilities even before their departure,” Syjuco said.

Rep. Ignacio Arroyo (5th District, Negros Occidental), also an author of the measure, said it is but fitting to extend to the OFWs all the assistance that the government can give.

It requires the OWWA to establish, within one year an online payment system wherein the OFW-borrower may pay the loan amortization through the Internet.

The bill obliges the OFW-borrower to regularly remit the loan payment or amortization through the OWWA accredited banking institutions. The loan shall be paid in 12 equal monthly installments at a preferred interest rate of not more than six percent per annum.

Furthermore, the bill prohibits the issuance of the Overseas Employment Certificate (OEC) and any other exit permit/clearance to work abroad to an OFW-borrower that has been unable to comply with the terms of the loan.

The co-authors of the bill are Reps. Walden Bello (Party-list, Akbayan), Maria Carmen Zamora-Apsay (1st District, Compostela Valley), Neil Benedict Montejo (Party-list, AN WARAY), Emmeline Aglipay (Party-list, DIWA), Cresente Paez (Party-list, COOP-NATCCO), Luzviminda Ilagan (Party-list, Gabriela), Maximo Rodriguez, Jr. (Party-list, Abante Mindanao, Inc.), Manuel Agyao (Lone District, Kalinga), Maria Milagros Magsaysay (1st District, Zambales), Lani Mercado-Revilla (2nd District, Cavite), Tobias Reynald Tiangco (Lone District, Navotas), Mark Villar (Lone District, Las Piñas City), Emmanuel Pacquiao (Lone District, Sarangani), Maria Valentina Plaza (1st District, Agusan del Sur), Imelda Quibranza-Dimaporo (1st District, Lanao del Norte), Fatima Aliah Dimaporo (2nd District, Lanao del Norte), Isidro Lico (Party-list, Ating Koop), Lorenzo Tañada III (4th District, Quezon), Raymond Mendoza (Party-list, TUCP), Carlos Padilla (Lone District, Nueva Vizcaya), Leopoldo Bataoil (2nd District, Pangasinan), Joseph Violago (2nd District, Nueva Ecija) and Rodel Batocabe (Party-list, Ako Bicol).