QuestionsQuestions (OWWA MEMORANDUM OF INSTRUCTION NO. 003, S. 2001)
It is issued pursuant to Executive Order No. 329 dated December 29, 2000, declaring an amnesty program for OWWA’s direct-lending operations in livelihood development.
The program applies to livelihood loans released under: (a) National Livelihood Support Fund (NLSF), (b) Expanded Livelihood Fund (ELF), and (c) Non-collateralized Loan Fund.
OFW livelihood availees, including dependents, who availed of livelihood loans on behalf of OFWs and have arrearages as of the effectivity of the MOI are entitled to benefit, subject to processing and compliance with the stated rules.
Applications must be addressed to the Regional OWWA Units (ROU) where the livelihood loan accounts originated.
The condoned amount includes all penalties on delinquent loans or the remainder of the total outstanding balance, plus the sum of unpaid principal and interests (as described in the MOI’s computation framework).
The borrower must settle a minimum of 20% of the unpaid principal and interests as a precondition for acceptance to the Amnesty Program.
The base amount is the sum of the unpaid principal and interest, excluding penalties. This base amount is then used to compute the required 20% fraction.
Penalties are deemed condoned upon approval of the application and completion of the required conditions. However, non-compliance with or non-completion of the succeeding provisions of the amnesty package renders the penalty condonation ineffectual.
After condonation of penalties, the outstanding balance is restructured according to the cash flow/capacity to pay, and is allowed up to a maximum term of three (3) years.
It commences only after completion of the 20% initial payment and official approval of the application for penalty condonation.
The MOI provides that current interest rates of the modified livelihood program shall be applied for the adjusted repayment period.
Up to a maximum term of three (3) years.
Accounts of borrowers who fail to avail of the Amnesty Program, or who fail to complete the initial application phase, automatically become due and demandable and are subject to immediate foreclosure/cancellation.
No. Foreclosure proceedings are suspended during the effectivity of the Amnesty Program to allow borrowers to avail of its benefits.
Partial payments are applied in this order: (1) penalties, then (2) interest, and lastly (3) principal.
Yes, provided that all expenses relative to the foreclosure are paid together with the accrued interest on the loan from the time of foreclosure.
No. Consistent with the objectives, there shall be no processing or other fees to be charged to availees under the Amnesty Program.
Loan availees with arrears may avail for a period of one year upon signing and immediately following compliance with publication requirements; applications are accepted until the last day of implementation of the Executive Order.
A promissory note for the restructured account shall be prepared by the concerned ROU and must be notarized at the expense of the applicant.
Collections resulting from implementation are retained in the ROUs as part of the Expanded Livelihood Development Program’s financial resources: NLSF and ELF collections augment funds for Direct Lending For Individual Entrepreneurs, while Non-collateralized accounts collections augment funds for the Re-Entry Loan for Displaced Workers.