OFW
DOLE is also requesting to reduce the interest rate for the said OFW loan from 8
percent to 6 percent and exclude the collateral requirement because the labor
department will be the guarantor of the OFWs
DOLE reviews displaced
OFW assistance
T
he Department of Labor and Employment (DOLE) is
drafting new guidelines in the grant of benefits and loans
to displaced and repatriated overseas Filipino workers
(OFWs), Secretary Silvestre Bello III said recently.
In a recent dialogue with the repatriated workers from
Mohammad Al-Mojil Group of companies in Saudi Arabia,
Bello also vowed to assist returning workers seeking
assistance in claiming their unpaid financial and security
benefits from their employers.
“Give us all the proper papers and documentation and we assure you
of the labor department’s assistance in claiming your unpaid wages and
benefits. We have also created a technical working group to thoroughly
review the rules and guidelines in applying for a loan,” Bello said.
The labor chief, who is also the chairperson of the OWWA Board,
has approved to raise the enhanced livelihood assistance given to the
displaced OFWs from P10,000 to P20,000 cash assistance.
The Landbank of the Philippines grants loan assistance amounting
from P50,000 – P300,000 for the OFWs who can provide legitimate
collaterals such as land titles and other valued assets with a regular
interest rate of 8 percent.
This prompted DOLE and OWWA to negotiate with the officers of
32
Landbank in clearing out various terms and requirements in granting loan
assistance for the distressed OFWs.
DOLE is also requesting to reduce the interest rate for the said OFW
loan from 8 percent to 6 percent and exclude the collateral requirement
because the labor department will be the guarantor of the OFWs.
“We are reviewing the rules for the loan. For those who are interested
in applying, there will be no collateral because we will be your guarantor.
Take good care of your money and attend our livelihood training so that
you won’t find the need to leave the country again,” Bello added.
OWWA Administrator Hans Leo Cacdac meantime noted that first-
degree relatives, such as wives and children of the deceased OFWs and
Filipino workers who are still in abroad can process the claims and loans,
provided that they have the proper documentations.
“We are finalizing the rules for the loan with the officers of Landbank.
We hope to sign a memorandum of understanding with them in June,”
Cacdac explained.
It can be recalled that 9 companies from the Middle East have ceased
their operations due to a financial crisis and resulted in the displacement
of thousands of OFWs.
These OFWs have been repatriated by the government and a large
number of them are formerly working for Mohammad Al-Mojil Group. The
Department of Foreign Affairs, DOLE, and OWWA are exerting all efforts in
assisting the said OFWs in claiming unpaid wages and benefits from their
employers.