MANILA (PNA) – The House of Representatives has passed on third and final reading a legislative measure that seeks to establish a credit assistance program for overseas Filipino workers (OFWs).

House Bill no. 161 plans to extend credit assistance to Filipinos intent on working overseas but do not have enough means to process their work papers.

Likewise, the measure seeks to establish an exclusive credit assistance program by providing OFWs access to credit facilities even before their departure.

Aurora Rep. Juan Edgardo Angara, principal author of HB 161, said the proposed measure aims to provide the granting of up to P50,000 in loans to any OFW.

The loan facility is proposed to be coursed through the Overseas Workers Welfare Administration (OWWA), which managed the P100-million borrowing program that was suspended in 2005 after two years in operation.

The OFW, however, must have a contract certified by the Philippine Overseas Employment Administration (POEA) through OWWA.

"The loan may be used to defray an OFW's recruitment expenses, including placement fees, documentation costs and plane tickets," Angara said.

The proposed measure provides for a maximum loan amount of P50,000, payable in 12 months at a preferred interest rate of not more than six percent a year.

Angara said the program was intended to ease the financial burden of departing OFWs who usually end up leaving behind their families in huge debts due to the processing costs of their overseas employment
contract.

The loan amount would be covered with a loan redemption insurance from the Government Service Insurance System (GSIS), with the OFW paying the premium through an account with any domestic or foreign banking institution authorized to do business in the Philippines, with a member of his or her family designated as a co-borrower.

Aside from the payment of recruitment fees, the bill also proposes that OFWs be allowed to avail of a temporary loan to cover the living expenses of their families during their first few months of work abroad.

"It is but fitting to extend to our OFWs all the assistance that the government can give," Angara said. (PNA).

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