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Repatriated OFWs to benefit from Php1.3 trillion economic stimulus package

The Philippine government’s Defeat COVID-19 Committee (DCC) has approved the Philippine Economic Stimulus Act (PESA) worth Php1.3 trillion to aid the recovery of the country’s economy that has been affected by the impact of the spread of the coronavirus disease (COVID-19).
Part of the Php1.3 trillion economic stimulus package is the provision of Php110 billion wage subsidy that will be provided for repatriated overseas Filipino workers, as well as freelancers, self-employed individuals, and other non-essential businesses.
“The economic stimulus program is meant to ensure business operations and job retention in this time of Covid-19 pandemic,” said House Majority Leader and DCC Chairperson Martin Romualdez who furthered that the bill aims to restore economic growth, maintain employment levels, and expand the productive capacity of the country in the aftermath of Covid-19.
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Another mandate of the bill includes a comprehensive countrywide COVID-19 mass testing, with Php10 billion allocated for testing for 2020 and 2021.
The Department of Labor and Employment is also set to receive Php30 billion for its cash for work program.
Also included in the bill are provisions of loans for businesses, banks, and vital sectors that include:
– loans for micro, small, and medium enterprises (MSMEs) worth Php50 billion for 2020 and PHP45 billion for 2021 under the Small Business Corporation;
– interest-free loans worth Php50 billion under the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP);
– and loan guarantee amounting to Php40 billion by the Philippine Guarantee Corporation.
Reports from the Philippine News Agency further that other forms of assistance shall receive funding under the bill, including Php10 billion as additional assistance for MSMEs this year; Php58 billion for the tourism industry; Php75 billion for the transportation industry; Php44 billion for the manufacturers, importers, exporters, and service sectors; and Php66 billion for the agri-fishery sector.
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Php25 billion shall be allotted this year and another Php25 billion next year to the National Development Company (NDC) in order to minimize permanent damage to the economy and enable faster recovery of certain critically-impacted businesses.
The proposed bill will also include an enhanced “Build, Build, Build” program worth PHP650 billion in three years starting 2021.

Staff Report

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