DOLE earmarks P2B for returning OFWs

The government has allocated at least P2 billion in loan packages to some returning Filipino migrant workers who want to start their own business in the Philippines, the Department of Labor and Employment (DOLE) said Tuesday. In an interview with reporters, Labor Undersecretary Danilo Cruz said overseas Filipino workers (OFWs) can avail themselves of loans from at least P300,000 to P2 million depending on the nature of business the applicant wants to start. The government will impose a “small" interest rate of 7.5 percent a year, he said. The DOLE said the loan package is aimed at encouraging migrant workers to start their own small business and livelihood projects in the country than working overseas. The loan program will be processed by the Land Bank of the Philippines and the Development Bank of the Philippines, DOLE said. Cruz noted the loan applicant needs to have enough savings as he would shoulder the 20-percent cost of the loan project applied for under the program. The loan program to be facilitated by the Overseas Workers Welfare Administration (OWWA) will only cover 80 percent of the cost, he added. “The workers [who wish to avail themselves of the loan project] need to invest and have enough savings as well as training and knowledge to be able to effectively manage their small businesses," he said. Labor Secretary Rosalinda Baldoz led the launch of the P2-billion loan package at the First National Congress of Overseas Filipino Workers and Families held Tuesday at the SMX Convention Center in Pasay City. During the program, Baldoz handed over checks amounting to P8 million to at least 12 loan beneficiaries. The program was launched to mark the country’s celebration of the International Migrant Workers’ Day that highlights the significant contribution of the more than 8 million OFWs. OFW remittances, which totaled nearly $19 billion last year, have continued to buoy the Philippine economy. The country is the world’s third-largest sending country of migrant workers — next to China and India. Cruz said the migrant workers need not be a current OWWA member to qualify the loan program. “Those who want to avail of the loan reintegration package only needs to undergo the required capacity building program to be handled by OWWA," he said. — JE/PE/VS, GMA News