They did it. The government created a loan facility for OFWs. Sounds like good news, doesn’t it? I sure hope it DOES turn out well.
In a previous article, I shared a few of my misgivings about a government-led loan facility. Bottom-line: it usually doesn’t work. And the failure of the previous program (this current program is a re-hash of an old program) shows this to be true.
But hey, maybe this time around they’ve changed things for the better. Main concern is: how can the government compel an OFW to pay-up? Paano sisingilin ng gobyerno ang hulog ng OFW bawat buwan? If they’ve found an effective way to collect monthly loan re-payments, then maybe, just maybe the loan facility will work out well.
At least now OFWs have an option for a good loan: maximum loan amount of P50,000, payable in 12 months at a preferred interest rate of not more than six percent a year.
Cheers to the sponsors of the bill, and goodluck. Hope they did their homework and placed the necessary controls to make the loan facility a success!
From GMANews.TV …
MANILA, Philippines – The House committee on Filipino Overseas Workers unanimously approved Wednesday House Bill 161 or the Overseas Credit Workers Assistance authored by Aurora Rep. Juan Edgardo Angara.
Under the bill, migrant workers who have valid contract certified by the Philippine Overseas Employment Administration can avail themselves of loan of up to P50,000 even before they leave the country for posting abroad.
The loan facility is proposed to be coursed through the Overseas Workers Welfare Administration, which managed the P100-million borrowing program that was suspended in 2005 after just two years in operation.
â€œThis bill is our little contribution to help OFWs who we called the new heroes of our generation,” Angara said.
Angaraâ€™s proposal 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.
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