Close to 4,000 jobs created by P2B OFW loan program

MANILA, Philippines - The national government's reintegration program for the Overseas Filipino Workers has created close to 4,000 jobs in the country, the Overseas Workers Welfare Administration said on Wednesday.

In her report to Labor Secretary Rosalinda Baldoz, OWWA administrator Carmelita Dimzon said that the implementation of the P2-billion National Reintegration Program has benefited OFWs and their families.

"The OWWA, which implements the P2 billion National Reintegration Program jointly with the Landbank of the Philippines, has recorded 854 approved loan applications as of end of December 2013, with total loans of P632.531 million granted and released," said Dimzon in her report.

She said that 59 percent of the loans were used to fund small and medium businesses in the non-agriculture sector, such as general merchandising, groceries, water purifying stations, auto supply, hardware, trucking, and RTW (ready to wear) garments.

Meanwhile agriculture-based or related enterprises OFWs engage in using the loans range from grains trading, piggery, poultry, agriculture supplies, post-harvest, bakery, fruits and vegetables farming, copra trading, and fishery.

These constitute 41 percent of the loans approved. Region 3 has the highest number of fund borrowers, followed by Region 4-A, Dimzon said.

Noting that the program is slowly gaining headway, Baldoz directed the Project Management Committee of the program to strengthen further its implementation to encourage more OFWs to put up their own business and eventually help generate employment.

"I am happy to note that agri-based enterprises are fast catching up with non agri-businesses that our OFWs are venturing into using the money from the P2 billion National Reintegration Fund," Baldoz said.

"Last year, I have instructed the Project Management Committee to cut down and simplify further the requirements for availment and we had met with Landbank officials in this regard. I expect that this year, the committee can already report to me and the OWWA Board that access to the program has become faster and easier, but without sacrificing the quality and sustainability of the businesses that the loan program creates," Baldoz said.

President Benigno Aquino III launched the program in June 2011, which lends between P200,000 to P2 million to any OFW who wants to establish a business so it will be more attractive for them to stay in the country for good.

The loan has an interest of only 7.5 percent per year and payable in five years with a grace period of two years.