Villar wants pre-departure loans to OFWs restored

In the wake of government programs granting subsidies to the poor amid the escalating prices of fuel and rice, Senate President Manny Villar asked the government to likewise extend assistance to departing overseas Filipino workers (OFWs) through the restoration of the pre-departure loan program.

"The dollar remittances coming from our OFWs are one of the prime factors keeping our economy afloat, thus, it is only due that they also receive support from the government," said Villar, adding that such would be a fitting gift to overseas workers in celebrating the World Migrants Day.

The Nacionalista Party president said the government can give subsidy to prospective OFWs and their families if President Gloria Macapagal-Arroyo will direct Labor Secretary Marianito Roque, current administrator of the Overseas Workers Welfare Administration (OWWA), to restore the pre-departure loan program for OFWs.

The Migrant Workers Act provides for the creation of a P100-million Migrant Workers Loan Guarantee fund from which a departing OFW can secure a loan ranging from P5,000 to P40,000, payable in a year's time with an interest rate of 7.5, for plane fare, placement fees, clothing and pocket money.

The pre-departure loan program has been suspended since 2006 apparently due to weak collection.

For Villar, well-meaning OFWs, especially in these trying times, should not be made to bear the brunt of the government's failure to successfully implement the program.

The Senate President emphasized that an efficient system can be implemented to properly manage the fund, and this should be immediately worked out.

Given that 70 percent of OFWs are reportedly unable to pay their loans, what about the 30 percent who are able to? We should not simply cut such help for OFWs, Villar stressed.

An estimated 3,000 OFWs leave the country daily, each contributing $25 to the government fund through the OWWA fee. At present, the OWWA has about P10 billion in funds from the OFW contributions.