Press Release
October 27, 2014

ANGARA WANTS CREDIT ASSISTANCE FOR OFWS

Senator Sonny Angara on Monday has called for the swift passage of a bill that seeks to provide credit assistance to overseas Filipino workers.

Under Senate Bill 1955, a credit assistance program will be created for OFWs to help them pay their recruitment fees and other costs incurred during pre-employment, and to defray the living expenses of their families left behind.

"We have a duty to provide as much assistance as we can to OFWs for their immense contribution to the nation," said Angara, acting chair of the Senate committee on labor, employment and human resources development.

"This credit facility is but another venue for government to support OFWs for sending in much-needed foreign remittances that help maintain the country's macroeconomic stability," he added.

If the bill will be enacted into law, an OFW, with a valid employment contract, may avail of a P50,000 loan from the Overseas Workers Welfare Administration (OWWA) to defray living expenses of one's family during the first months of absence, and to pay for recruitment expenses including placement fees, documentation costs and plane tickets.

The loan will be entered into by and between the overseas worker-borrower and OWWA, with the next-of-kin as a co-borrower.

The loan shall be paid in 12 equal monthly installments at a preferred interest rate not to exceed six percent per annum through accredited banking institutions.

The proposed measure provides that failure to pay the loan shall be sufficient ground for the Philippine Overseas Employment Administration to withhold the issuance of the overseas employment certificate (OEC) and any other exit permit or clearance to work abroad to the overseas worker-borrower.

Any government official or private entity who issues an OEC or exit permit to any overseas worker-borrower who has failed to pay the loan will be penalized with a 60-day suspension for the first offense, and dismissal from the service and permanent cancellation of license for the second offense.

The House of Representatives has already voted in favor of the bill on second reading and is set to approve it on third and final reading this week.

"I commend the members of the House for their favorable action on the bill which I have been filing since my days in Congress. I am hopeful that our version will receive the same support here in the Senate to address the needs of our modern heroes," Angara said.

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