Question & AnswerQ&A (OWWA MEMORANDUM OF INSTRUCTION NO. 003, S. 2001)
The primary purpose is to implement guidelines for the Amnesty Program on livelihood loans under OWWA's direct lending operations to assist OFWs and their dependents in settling delinquent loans through penalty condonation and restructuring.
The Amnesty Program applies to livelihood loans released under the National Livelihood Support Fund (NLSF), Expanded Livelihood Fund (ELF), and Non-collateralized Loan Fund.
OFWs who have availed livelihood loans and their dependents who have availed loans on behalf of OFWs with arrearages as of the effectivity of the Memorandum are qualified to avail of the program.
Delinquent borrowers must settle a minimum of 20% of their unpaid principal and interest as a precondition for acceptance into the Amnesty Program.
The 20% payment may be made in full upon application or in staggered payments over a prescribed period depending on the amount of unpaid principal and interest.
All accumulated penalties on the delinquent loan are condoned or waived upon approval of the application.
The remaining outstanding balance after the 20% initial payment will be restructured considering the borrower's business cash flow or capacity to pay, with a maximum repayment term of three years and current interest rates applied.
Borrowers who fail to avail or complete the Amnesty Program become immediately due and demandable and are subject to foreclosure or cancellation of their accounts.
Partial payments are applied in the order of penalties first, then interest, and finally the principal.
No processing or other fees are charged to borrowers availing of the Amnesty Program.
Foreclosure proceedings are suspended during the effectivity of the Amnesty Program to allow borrowers to avail of its benefits.
Applications must be addressed to the Regional OWWA Units (ROUs) where the livelihood loan accounts originated.
A promissory note for the restructured account must be prepared by the concerned ROU and notarized at the expense of the applicant.
The Amnesty Program is available for one year upon signing of the Memorandum of Instruction and after fulfilling publication requirements, with applications accepted until the expiration of the Executive Order's implementation period.
Such accounts may still avail of the Amnesty Program provided all expenses related to foreclosure and accrued interest from the time of foreclosure are paid.