Press Release
July 15, 2007

Jinggoy seeks establishment of OFW bank

TO help overseas Filipino workers save on costs of remittance transactions and to enable them to manage their money more effectively, opposition stalwart Senator Jinggoy Estrada is seeking the establishment of the Philippine Overseas Workers Bank.

"Hailed as modern day heroes, OFWs, numbering to about 8.5 million spread in more than 100 countries, have been considered as one of the major forces in the labor front today. Their remittances have become the country's single biggest source of foreign exchange. It is just fitting that we find ways to provide them with the means for lower-costing financial transactions, and enhance their income-generation capabilities as investors," Estrada said.

The solon noted government reports that remittances this year are expected to reach $14.1 billion, up from the recorded $12.8-billion in 2006.

"These huge remittances effectively make OFWs a major economic bloc in our society," Estrada, who chaired the Senate committee on labor during the 13th Congress, said.

Estrada's bill proposes a capital stock of the bank at the amount of two billion pesos divided into two million shares largely to be subscribed by OFWs at the value of one thousand pesos each share.

The Philippine Overseas Workers Bank, Estrada said, will grant loans and other financial assistance preferably to OFWs, their spouses or heirs for development of agriculture and small and medium scale commercial and industrial enterprises, and, to workers applying or re-applying for overseas employment to defray the payment of placement fees and other expenses.

The bank's board of directors includes officers and members of the different overseas workers' associations.

"It is about time that OFW's, with their huge and indispensable contribution to our economy, be provided with a bank they can call their own, effectively run and managed by people within their ranks and which is expected to be operated for their greater good and benefit," Estrada said.

News Latest News Feed