When Will The Pre-Departure Loans To OFWs Be Restored

June 28th, 2008 by Ellis | Filed under Business Loans/Credit/Financing.

The decision of the Overseas Workers Welfare Administration (OWWA) to suspend the pre-departure loan program is a big blow to our departing OFWs who are in dire need of money. Most of the departing OFWs may have sold their cows and carabaos, pawn their ricefields and residential lot or availed loans from loan sharks who make money from 5-6 system. The OWWA’s decision added more hardship and quandary to our new breed of heroes where they can get money to buy plane ticket, clothing, pay placement fees, pocket money and for their love one’s who will be left behind with no money to spend for daily sustenance.

It’s almost two year now since the pre-departure loan program has been suspended apparently due to weak collection, but until now this program is in limbo. If the government can grant subsidies to the poor to pay electric bills and buy fertilizers, how come they are turning blind and wearing deaf ears to the departing OFWs cry for help? These OFWs are one of the prime factors that keep our economy alive with their billions of remittances. It is only due that they also receive support from the government.

It is true that there are many OFW borrowers who reneged in their obligation to pay for their loans. But the problem is, OWWA has not really implemented an effective collection system of the loans. Making the wellmeaning OFWs, in these trying times, to bear the brunt of the government’s failure to successfully implement recovery of the loans extended to OFWs is not a justification at all.

So, together with thousand of Filipinos, I’m also appealing to President Gloria Macapagal Arroyo to direct Labor Secretary Marianito Roque, the current administrator of OWWA to urgently restore the pre-departure loan program for OFWs.

The P5,000 to P40,000 pre-departure loans is of great help to ease the burden of our departing OFWs. I’m sure, in a year’s time, many if not all of there borrowers, will pay their loans including the 7.5 percent interest. Collecting their loans is a matter of implementing a simple, speedy, effective collection system with less cost.