18, 2013

NR # 3291

Solon proposes establishment of Philippine OFW bank
A neophyte lawmaker has filed a measure seeking to establish a bank for Overseas Filipino Workers to provide adequate care, benefit and other forms of assistance to OFWs and their dependents. Rep. uan ! ohnny" Revilla #$arty%list, OFW Family &lub' said under (ouse )ill *+,*, the OFW )ank, to be owned by OFWs and their families, shall foster, improve and develop the financial interest and welfare of OFWs by providing them easy access to its products and services. !-uch services are efficient remittance, loan and credit assistance services and protection and ma.imi/ed benefits for their savings and investment," Revilla said. Revilla said as money sent home by OFWs continues to increase, there is a pressing need for more bank remittance service providers to give more support for the growth of remittances of these modern%day heroes. (e added that some OFWs are now allotting a ma0or part of their monthly income to their savings. 1his means more savings, which would translate to bigger investment in a bank they own, he said. !1he OFW bank would also encourage the entrepreneurial spirit of the OFWs by addressing and enhancing their investment potentials as they assure a better future for their families," Revilla said. Revilla said OFWs would also earn benefits derived from the earnings of the bank2s net income being shareholders of the bank. 3nder the measure to be known as the $hilippine OFW )ank, the bank shall accept remittances from the foreign earnings of OFWs and grant short%term or long%term loans and advances preferably by OFWs and their dependents against security and real estate and4or other acceptable assets for the establishment, rehabilitation or e.pansion of small%scale and medium%scale enterprises as well as agriculture, commercial, industrial and other productive enterprises. 5t shall also grant loans and credit assistance in easy payment terms to OFWs who will be deployed for overseas employment to defray the payment of recruitment e.penses. 1he OFW )ank shall likewise invest in stocks6 government guaranteed bonds and secured collaterals having maturities of not more than 78 years. 1he bill prohibits the granting of loans to any 9irector, Officer, :mployee or Agent of the )ank, directly or indirectly, and no loans shall be granted to a corporation, partnership, or company wherein any member of the )oard of 9irectors is a shareholder, agent or employee of the )ank. ;ikewise, at the end of each calendar year, the )ank shall determine the net result of its operation, of which adequate allowances shall be made for probable losses and the net profit shall be distributed. 1wenty percent shall accrue to the reserve account, <8= shall be deducted the guaranteed earning of the preferred shares of stocks owned by the individual OFW or their dependents and the remaining profits shall be paid as dividends on common shares held by the individual OFW. 1he bill provides a penalty of $>88, 888 or imprisonment of not more than ? years or both for violators. #78' lvc

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