VILLAR WANTS LOAN ASSISTANCE TO OFWS

TO defray the family of living expenses during the first three months of his/her absence, Senator Cynthia A. Villar pushes for providing an overseas contract worker with a valid employment contract a P50,000 loan from the Overseas Worker and Welfare Administration (OWWA).

Senate Resolution No. 507, entitled "An Act Establishing A Credit Assistance Program for Overseas Workers," also provides that any member of the family of an Overseas Filipino Worker (OFW), not disqualified by law, can be a co-borrower of the loan and can execute necessary documentation related it.

Villar said the OFW making the loan must be certified by the Philippine Overseas Employment Administration to qualify to loan application.

She said the loan will also help an OFW in his recruitment expenses, including placement fees, documentation costs and plane tickets.

"It is but fitting to extend our OFWs all the assistance that the government can give, including an exclusive credit assistance program as proposed under this measure," said Villar who stressed that OFWs have time and again been referred to and honoured as our "modern day heroes."

She described as "expansive" the credit facilities envisioned under her proposed piece of legislation.

She said OWWA would grant and release the loan upon proper submission by the applicant of the following documents--employment contract, plane ticket and bank account. These must be duly certified in writing by the recruitment agency with corresponding authentication and properly certified/verified by the POEA.

The senator, whose Villar Foundation, has been helping OFWs for the past several years, said the OWWA appropriation for the loan will come from the Overseas Welfare Fund.

The loan shall be paid in 12 equal monthly installments or more but not exceeding 24 months at a preferred interest rate not to exceed 6% per annum through the bank account.

Overseas workers availing of the loan should establish a bank account where the monthly remittances of his salaries and wages abroad and payments on the loan shall be made.

"It shall be the obligation of the overseas worker-borrower to remit his earnings abroad only through the said bank account," also stated Villar.

She said the applicant shall execute the necessary authority for the bank to withhold the monthly loan amortization from his remittances.

"Consistent with the State policy that the State affirms labor as a primary economic force and that it shall protect the rights of workers and promote their welfare, it is hereby declared that the government and its instrumentalities must promote and carry out programs geared towards advancing the interest of OFWs by providing them access to credit facilities even before their departure," explained the former Las Piñas congresswoman.