BACOOR CITY, Cavite: Cavite Second District Rep. Lani Mercado-Revilla pushed for the establishment of a Credit Assistance Program for Overseas Filipino Workers (OFWs) through House Bill (HB) 3378.
The bill seeks to protect especially those who are new hires from indebtedness and loan sharks before they leave the country in search of a better life.
The usual plight of an OFW is to resort to borrowing or a salary deduction scheme due to the high cost of recruitment and placement fees. The reality is many are vulnerable to illegal recruitment, contract and visa deception.
“It is high time that our government steps in and alleviates the financial burden experienced by our modern-day heroes and helps their families,” said Mercado-Revilla.
Mercado-Revilla said that despite the clear economic benefits that the government derives from the remittances, migrant workers and their families are often financially hard up. In 2020, the total remittance sent by OFWs reached $29.9 billion. In 2021, OFW remittances hit an all-time high at $31.4B, which accounted for 8.9 percent of the country’s gross domestic product.
With a valid contract, an OFW may avail of a loan up to P50,000 from the Overseas Workers Welfare Administration (OWWA) to defray the living expenses of the OFW’s family in the few months of his/her absence, as well as other expenses incurred in the processing of the OFW’s employment. The loan shall be paid in twelve equal monthly installments or more, but not exceeding twenty-four months at a preferred interest rate not to exceed 6 percent.
In effect of this arrangement, the OWWA can monitor and check the status of the OFW’s condition.
HB 3378 is also co-authored by Mercado-Revilla’s sons, Cavite First District Rep. Ramon “Jolo” Revilla 3rd and Agimat party-list Rep. Bryan Revilla.