(Eagle News) – The bank that will cater to the needs of overseas Filipino workers promised by President Rodrigo Duterte will soon be a reality.
Malacanang released on Monday, October 9, Executive Order No. 44, which approved the acquisition of Philippine Postal Savings Bank (PPSB) and its conversion into the Overseas Filipino Bank (OFB)
President Rodrigo Duterte signed EO No. 44 on September 28 this year, or almost a year after the President first aired his proposal and promise to the OFWs for the bank’s creation.
“Overseas-based Filipinos, who contribute to the country’s foreign exchange income, currency stability, employment, and overall economic growth through their remittances should be given provision of priority support for their growing financial needs,” EO No. 44 stated.
E.O. No. 44 approved the acquisition of PPSB by the Landbank of the Philippines (LBP).
“There is a need to establish a policy bank dedicated to provide financial products and services tailored to the requirements of overseas Filipinos, and focused on delivering quality and efficient foreign remittance services,” E.O. 44 said.
Section 1 of the order stated that the acquisition of the PPSB and its conversion into the Overseas Filipino Bank (OFB) will be subject to the necessary approval and clearance of the Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), Philippine Development Insurance Corporation (PIDC), and the Philippine Competition Commission.
“The acquisition of PPSB by LBP through transfer of shares and its subsequent conversion into an Overseas Filipino Bank is hereby approved, in accordance with existing laws, rules and regulations,” the EO signed by President Duterte said.
The order also directed the transfer by the Bureau of Treasury of all of its shares in PPSB to LBP at “zero value.”
The PPSB was also ordered to expedite the transfer of all its assets, liabilities, records, systems, and other pertinent items to Land Bank.
But even before the actual transfer of shares, the PPSB is directed to return to the National Treasury the balance amounting to P249.23-million from the P500-million previously released to fund the Project DRIVE (Dagdag Regular Income Via Entrepreneurship) Fund managed by the PPSB,” according to a Palace news release.
Further, The President also directed Landbank to “infuse the necessary capital to OFB.”
“In order to strengthen the capital base of OFB and enable the same to attain its primary agenda of servicing the various financial and banking needs of overseas Filipinos, the LBP is hereby directed to infuse the necessary capital of OFB,” EO No. 44 stated.
As for the management of OFB, Land Bank will implement a reorganizational plan, which may cause the detail or assignment of LBP employees to the OFB as may be necessary.
The affairs and businesses of OFB will be managed by a 9-member Board of Directors composed of the LBP President as OFB Chairperson; LBP-designated OFB President as Vice Chairperson; four LBP-designated directors or officers as members; and one representative each from the Department of Labor and Employment (DOLE), the Overseas Workers Welfare Administration (OWWA), and the private sector representing overseas Filipinos, as members.
“The members representing the DOLE, OWWA, and overseas Filipinos shall be appointed by the President,” the EO said.
For those PPSB employees who will be affected by the reorganization, an early retirement incentive plan awaits those who voluntarily retire or may be separated from the service. This is on top of the retirement or separation benefits due to them under existing laws.
(with a report from PCO)
