Proposed Credit Assistance Bill

TO ALL OFWS - RETURNING/RETIRING:
CMA Director Ellene Sana has always provided us with updates regarding OFWs.
Many of us are still unaware of whatever impact we make on our government except of course the remittances we send.
Through this medium, we hope to share what is happening right now in our country about us – OFWs.
Kahit hindi po tayo makapagpahayag ng ating mga kuro-kuro, maaari naman po nating mabasa at malaman kung ano ang kasagutan sa maaari nating maging katanungan. Hindi na po  natin napapag-ukulan ng pansin ang mga bagay na ito dahil sa maraming kadahilanan, isa na po ang ating pag wawalang bahala – kasi sasabihin natin – bahala na nga sila kung ano ang kanilang nais gawin.  Pero dapat po nating alalahanin na ang lahat ng ito ay makatotohanan at para rin sa atin. Kung nuong mga nakaraang panahon ay tila walang malasakit ang ating pamahalaan sa mga nangyayari sa atin, ngayon po ay mayroon na tayong boses at higit sa lahat ating isaisip ang ating karapatan.
Maraming salamat po.
______________________________________________-

From: King <rey_orbon@yahoo.com>
To: pinoy-abroad-forum@yahoogroups.com
Sent: Wed, October 13, 2010 6:28:44 PM
Subject: [pinoy-abroad-forum] Re: results of sept 30 twg on credit assistance bills

 
Dear Ellene,

Sorry if ever it is only now again that I had participated in the discussion on the OFW affairs. On the proposed credit assistance bills, I would say that the proposal is laudable, but I would say that they are all cosmetic. What I am looking for is on the proposed bill as authored by Cong. Rufus Rodriguez, wherein he is spousing for the credit assistance to the returning OFWs. On the average the OFW that is returning for good in the country is not bringing with them millions on their end of service awards (or indemnity as we call it here). If it is the thrust of our government that we as a country take-off economically, the Bill as prosed by Cong Rufus Rodriguez be passed and become a reality.

Many of the returning OFWs has little capital but this cpaital is not enough for him to open a small or medium sized company or business so he needs help from the government thru a loan assitance. This is what we really wanted. This kind of program will give a boost to the ecomic uplifment not only of the returning OFW and his family but by the countryside where he is living. The OFW had labored so much not only for his family but for the country as well. It is a fact that in so many times in the past if not for the OFW remittances our country could have succumbed in the many financial crisis that hit our country. Because of the OFW remittances the country was made afloat from these crisis. Our government should take cognisance on these and at least payback all these hardships by giving the returning OFWs credit assistance in their planned business endeavors. We, OFWs do not need the accolade "Bagong Bayani". We dont need this lip service. What we want is a concrete program just like this credit assistance if he (OFW) is plannung to open up a business. I just hope that this bill by Cong. Rodriguez would be supported by all the honorable men of congress if only to recognize the contributions of the millions of Filipino OFWs thoughout the world.

Just like me, in particular, I will be going home for good in the very near future. I had already planned the kind of business I will put up once I come home in our country. But the money that I will bring will not be enough ( as I am not planning to open a sari-sari store). I will need assistance from the banks or other lending institutions for loans. If the government will institute a program wherein OFWs can avail of loans with very minimal interest rates and at longer paying periods,(much better if they can give character loans) then that would be a tremendous help for us as aspiring entreprenuers that are formerly OFWs. The business that we will open will have a big multiplier effect. We will be hiring people to help us in our business and we will create jobs for our people. We will pay taxes. We will be purchasing from suppliers who will supply us with our raw materials or finished goods that we will sell. Think of all these.

The only option for me when I come home in the Phils is to open up a business as I am too old to seek employment in the country. I will go to business as this is the way that I can be of help to my people and to my country. The Bill as proposed by the honorable Rufus Rodriguez should be enacted now and should not be kept in the back burner. This is the kind of Bill that has to be acted NOW if the Phils aims to catch up with our neighboring countries. Malaysia, Thailand, Indonisia and now Vietnam is very much aheasd of us in terms of economy. Our government leaders under the leadership of Pres. Aquino should see the wisdom in helping and extending credit assistance to returning OFWs who wants to venture into business.

To Ellene, please take up the cudgels for the OFWs that the Bill as proposed by Cong Rodriguez be given preference by our congress as this is one of the keys in the progress of our country. TO OUR GOVERNMENT LEADERS THIS IS OUR CHALLENGE, EMPOWER THE RETURNING OFWS THRU CREDIT ASSISTANCE AND SEE THE PHILS. TAKING POSITION SIDE BY SIDE WITH OUR PROSPEROUS ASEAN NEIGHBORS!

Reynaldo S. Orbon
OFW - Al-Khobar
Saudi Arabia

--- In pinoy-abroad-forum@yahoogroups.com, "ellenesana" <ellenesana@...> wrote:

  hi all.
 
  sept 30 twg on credit assistance:
  present:
 
  NGO --noel esquela, cma
  recruiters - pasei
  dbp and lbp
  owwa
  legislative staff of congs. angara, arroyo and syjuco (authors of the bill)
  cowa
 
  it was agreed, as suggested by noel, that before they can start the discussion on the substance of the proposed bill, owwa should first present its report on the implementation of the credit assistance program per ra8042 provision. owwa was therefore tasked to prepare its report for the next twg meeting.
 
 dbp will also provide a copy of the moa between dbp and owwa/dole on the pdl and fal signed in 2005.
 
  please be assured that your inputs/ comments on the proposed bill are intact and will be presented in the twg in due course.
 
  maraming salamat muli.
 
  ellene
  
  --- In pinoy-abroad-forum@yahoogroups.com, ellene sana <ellenesana@> wrote:

  dear malou, tina:
 
  salamat sa comments and inputs. i hope it is ok that i am sharing your comments to our e-group of pinoys abroad.
  briefly, tina on your clarifications:
  1. in the owwa scheme, there was no bank account requirement, kaya talagang walang pressure to pay back unless owwa runs after the ofw borrower through some other ways;
 
  2. how they arrived at the P50T amount -- we do not know also...we will seek clarification on thursday and keep you all posted.
 salamat!
 
 regards,
  ellene
  --- On Tue, 28/9/10, Mary Lou Alcid <mlalcid@> wrote:
  
  From: Mary Lou Alcid <mlalcid@>
  Subject: request for inputs/ comments on proposed credit assistance program for ofws [1 Attachment]
  To: "Ellene Sana" <ellenesana@>
  Received: Tuesday, 28 September, 2010, 11:41 PM

   Dear Ellene,
 
  Kumusta na? Do consider the comments below  by my friend Tina Liamzon  who works with  Pinoys/Pinays in Rome and other  cities of Itay.
--- On Tue, 28/9/10, Cristina Liamzon <cristina.liamzon@> wrote:

   From: Cristina Liamzon <cristina.liamzon@>
  Subject: Re: [migrationdev_orgs] request for inputs/ comments on proposed credit assistance program for ofws [1 Attachment]
  To: "Mary Lou Alcid" <mlalcid@>
Date: Tuesday, 28 September, 2010, 7:49 PM
  Re: [migrationdev_orgs] request for inputs/ comments on proposed credit assistance program for ofws [1 Attachment]
  Hello Malou,
  Many thanks for sending this...here are some comments to the questions being raised.
  for the twg on sept 30, our requests to you:
  2. are you ok with the proposed repayment mechanism? i.e. coursing it through the bank? the interest of 6%? (note in RA10022, loan interest should not be higher than 8% per annum)
  The lower the interest rate for the OFW borrower/family, the better in a way as of course this means that they will have to pay less and thus more income for the OFW/family. At the same time, this rate is a highly subsidized rate and I’m just wondering if this is sustainable given the costs of administering the mechanism and the program, including the previous high default rate of 70% (2008)in the previous loan program.
  Yes, I would think that for more effective payment of loans, it would be best to course through the banks which have more presence in various cities etc than the OWWA offices. The main drawback though is because the loans are insured and OWWA funds serve as guarantee funds, the banks do not really have the incentive to run after loan repayments as they will be ultimately paid anyhow. The HB stipulates that the OFW/family needs to open an account with the bank in the Phil from where the loan will be disbursed and s/he must also use this account for all future remittances. The remittances would then serve to pay the monthly amortizations, given the authorization from the OFW to the bank. I think it would be helpful to check if this was also the mechanism in the previous program, that the OFW was required to also send the remittances to the account of the bank where the loan was given and how this worked out.
  Otherwise, just repeating the same procedure could lead to the same result of non-repayments of the loans.
  3. are you ok with the sanctions? disqualification from future overseas employment? puede ba ito? hindi ba violation of the constitutional right to travel ito?
  There is really a very high risk that loans will not be paid back by the OFWs and this has already been the experience so far. For one, OFWs/their families believe that this is ‘their’ money anyhow (as they pay an annual OWWA fee), why the need to repay; secondly, it is the rare OFW who does not incur a lot of debt prior to departing from the Phil; often, it can mean that they are indebted at high, even usurious interest rates. They will in all probability pay back these high-interest loans first before even thinking of meeting their obligation to OWWA...in fact, in financial literacy classes, the teaching is to pay back loans with highest interest first, before those with lower interest rates.
 
   I think a rather heavy threat/penalty would serve as a real disincentive to loan default by the OFW/families, including the possible threat of disqualification (or suspension) from future overseas employment; it may thus be a more effective tool for encouraging repayments than has otherwise happened wherein banks have the sole responsibility for loan collections and they’re obviously not very efficient going about it and as I said earlier, they don’t have enough incentive to really run after the borrowers with the insurance.
  4. are you ok with the amount of P50T maximum? would you propose that the loan for pdl be a choice between P50T or the exact amount as allowed by poea, i.e. equivalent of one month salary?
  I’m not sure how the amount of Php50k was reached. How many months family income was this amount supposed to cover while the OFW gets settled in the host country. Why the magic amount of 50k? I suppose the amount could be spent paying back the loans with high interest rates incurred by the OFW/family in leaving. But the amount could also be used by the family to spend on consumer items that are not really needs...but again that all depends on the level of financial education of the OFW/family â€" to ensure the maximum use of the loan.
  Hope these help...
  All the best,
  Tina