Question & AnswerQ&A (EXECUTIVE ORDER NO. 329)
The main purpose of Executive Order No. 329 is to approve an Amnesty Program for all Overseas Workers Welfare Administration (OWWA) livelihood loans to assist delinquent loan borrowers, ease their payment difficulties, and improve loan recovery and repayment rates.
The borrowers covered under the Amnesty Program include all delinquent accounts released by OWWA under the National Livelihood Support Fund (NLSF), Expanded Livelihood Fund (ELF), and Non-Collateralized Loan Fund.
Delinquent borrowers must settle a minimum of 20% of the outstanding balances on the principal and interests as a precondition for acceptance into the Amnesty Program.
All penalties on delinquent loans are condoned. This means the difference between the total outstanding balance and the sum of unpaid principal and interests will be forgiven.
After condonation of penalties, the outstanding balance shall be restructured with a repayment period determined by the amount settled, up to a maximum of three years. Interests will be charged for the adjusted repayment period.
Failure to comply with the stipulations of the new payment scheme will render the entire amount due and demandable immediately.
Yes, accounts already foreclosed with property titles or proofs of ownership may avail of the benefit provided that all expenses related to foreclosure are paid and accrued interest on the loan from the time of foreclosure are settled.
Foreclosure proceedings shall be suspended during the effectivity of the Amnesty Program to allow borrowers to avail themselves of the program's benefits.
The Amnesty Program took effect upon the signing of the order on December 29, 2000, and was valid for one year.
It applies to the direct lending operations under three OWWA funds: the National Livelihood Support Fund (NLSF), Expanded Livelihood Fund (ELF), and Non-Collateralized Loan Fund.