Duterte Admin To Create OFW Bank For Filipino Workers Abroad, Says DOLE Chief
Another campaign pledge made by President Rodrigo Duterte to
overseas Filipino workers (OFWs) will soon be fulfilled, this time on the
establishment of a government-owned bank that will cater solely to the millions
of migrant Filipino workers, top cabinet officials have revealed.
According to Department of Labor and Employment (DOLE)
Secretary Silvestre Bello III, President Duterte has given his green light for
the creation of an OFW bank that would cater to remittances and other banking
needs of Filipino workers abroad.
Furthermore, Bello explained that the OFW-oriented bank
would be owned partly by the migrant Filipino workers themselves through shares
of stocks, and that they would have their own credit facilities.
On the other hand, Department of Finance (DOF) Secretary
Carlos G. Dominguez III disclosed to reporters on the sidelines of a recent
budget hearing in the Senate that state-run lender Land Bank of the Philippines
is in the process of absorbing thrift-lender Philippine Postal Savings Bank
(Post Bank) to convert it into a bank dedicated to the “underserved” OFW
market.
The Finance Chief said it would take up to 11 months to
exercise due diligence and valuate Post Bank as well as secure permission for
the buyout from the Bangko Sentral ng Pilipinas to be able to finally set up
the OFW bank.
When asked if Post Bank would need capital infusion for its
new function, Dominguez answered in the affirmative, although he said the
amount of new funds needed has yet to be determined.
“We have to beef up the bank. It’s like giving your child
some money, but it’s still yourself,” he said.
Earlier, Bello and Philippine Postal Corp. assistant
postmaster general for marketing Luis Carlos reckoned the plan would require
the government to infuse about P2 million to P3 million in fresh capital to
Post Bank.
According to Dominguez, who, as the Finance chief also
serves as the head of Duterte Administration’s economic team, Post Bank would
operate as a wholly-owned subsidiary of Land Bank after a successful buyout.
Moreover, Dominguez explained that Land Bank is the only
government bank that can acquire Post Bank as the former is a “universal bank
which reaches out to different markets,” unlike another state-owned Development
Bank of the Philippines.
The government initially included Post Bank among the many
state-owned assets it wants sold for privatization to shore up revenues and
help bankroll its ambitious infrastructure program, a thrust under the Duterte
administration which Dominguez said is one of the keys to promote inclusive
growth and further bring down poverty rates in the country to 15% or lower by
the time the President’s term expires in 2022.
In recognizing both the plight and economic contributions of
the country’s modern-day heroes, President Duterte vowed during the campaign
period to make OFW concerns his top labor priority during his term.
An OFW-dedicated bank was one of his promises to migrant
Filipino workers back then; the others being a one-stop shop that caters to all
their documentary needs, which has since been fulfilled and a separate
government agency for OFWs.
He reiterated his promise to set up an OFW bank during his
three-day state visit to Japan in October.
“I’m thinking really seriously now na magkaroon kayo ng
sariling bangko ninyo… Maybe iyong postal bank ng gobyerno,” Duterte told
members of the Filipino community in Tokyo shortly after his arrival there.
Source: KickerDaily
Duterte Admin To Create OFW Bank For Filipino Workers Abroad, Says DOLE Chief
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December 02, 2016
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