Creative Business Ideas And Reactions Generated By The GMA News About The P1-billion Loan Program For OFWs

That said news article entitled "Aquino Sets Up P1-Billion Loan Program For Returning OFWs" on www.gmanews.tv that appeared on December 6, 2010  as posted in this site in toto also encouraged and generated some creative ideas and encouraging comments from some of gmanews online readers including myself. And the idea of putting up an OFW BANK was raised by one patriotic OFW and it gained momentum. Even this OFW BANK Incubator site is one of the positive results of the collective creative juices of several individuals who initially participated in that online sharing of ideas.

With my courtesies to the GMA Network, I beg for their indulgence again as I quote herein some of those creative reactions as follows, arranged chronologically from the earliest to the latest, and I intend not to indicate the virtual name of the person who made the negative comments to avoid imputing any unnecessary bias. Should some of these pseudonyms appear, it will be because it was there as part of their comments. Here they are: 

>>> The P15,000 is indeed funny. But OFWs can still make money out of it, let me illustrate it here, and this is from experience: A foreclosed single firewall house in Camella Homes that has a floor area of 40 square meters, with wooden partitions and doors and windows totally cannibalized is available for "hulugan" at BFS (Bahay Financial) at only P450,000. Check at http://www.bfs.com.ph/ If you don't trust Bahay Financial then you can check from Pag-Ibig Fund, SSS, GSIS, NHA or from the banks for any foreclosed units. Choose the dilapidated ones dahil talagang bagsak presyo, at pwede pang tawaran.

The first one that I got from BFS at P450,000 was actually P750,000 in their price list, namahalan ako so I went to the site again and took pictures of the house and showed them to the manager of BFS to complain that the P750T is too much for that garbage...and then offered to buy it at P300T in cash, sila naman ang tumawad hanggang P450T lang daw, so I took it.

To make that house decent and highly saleable you need to spend around P150,000 for the repairs and repainting. Once done, it will easily sell at P950,000 (that's a bargain). That means for a total of P600T investment you will make 58% or P350,000 more from that money. That P600T seed money can be raised by 40 OFWs borrowing P15,000 each from that P1B fund.

If the annual interest rate for that loan is say 8% per year, then you still get 50% return na wala naman talagang puhunan in the first place because you got it from the loan and what you paid for it is also a derivative of that loan. Once the refurbished house is sold, pay the loan in full (principal & interest) then borrow again, don't just revolve it. Do it twice in a year and you earn 100% at least of what you borrowed. It doesn't matter if it's small, it is just a numbers game.

>>> Ginoong Pilipino maraming salamat po sa encouragements nyo dito. So far your comments were the most practical and do-able....only if the general overseas filipino workers open their minds to business and leave/forsake their simple mindedness and unite for progress we will see a new Philippines....why can't we not? i have observed koreans in the '90s and the reasons why they have Hyundai's, Samsung's and LG's because back then they formed the then KFSB - korean federation of small businesses....which gave birth to now giant korean companies that competes teeth to teeth with japanese giants like Sony, mitsubishi, toyota's. I remember well how my amazement to learn when one old korean man told me how he sacrificed sending his money back to his country whilst working in 'the Philippines' (road construction project in mindanao) and investing part of it in small businesses that now forms the Hyundai group of companies....the koreans love their families but certainly expressing love for their country the most by contributing to its progress through hardship and investment. With your idea Ginoong filipino....i resolved not to buy anymore 32" plasma tv's, ipod's, bling-bling that turns my money to waste...but start using my brain to let my hard earned money to work for me and my family...



>>> Thanks for the compliments sir Aurelio Petrache, finally I found somebody who has the same wavelength as mine.

>>> How was the model OFW chosen? What were the basis? Lahat ng OFW ay dapat maging model...

>>> I totally agree with you. If your going to look at the list of past winners mostly are professionals who are earning big money And the story goes from rags to riches. Can they just give the award to less fortunate OFW's like the waiters, carpenters and cleaners. Theses guys have done their share of bring dollars to our country its time for the government to appreciate their efforts. I'm sure they have their own story of success from their humble beginnings.

>>> Good comment. Maybe it will be more beneficial and encouraging if our OFWs can take time to nominate those other OFWs whom they think also deserve to be cited for such honors, or even self-nominate.
How would anybody notice the good that others have achieved pag walang nagbigay ng info about such person.

>>> Mr_John_Jones. Tol, I'm totally with you with your views and opinions. Sampu ng mga kapatid nating OFW's. This program of the government is nothing but an insult added to injury to all the OFW's worldwide. Bakit pa kami mangungutang dyan? Eh barya at kakapiranggot lang iyan. At kung anu-anu pang requirements ang hihingiin niyo sa amin. Eh dito sa abroad ang daling mangutang at di hamak na malaki ang mauutang at mababa pa ang interes. Mr. PNOY and your GANG of advisers please stop this non-sense. Enough is enough. Address the real problems of the OFW's. Do I need to elaborate one by one? It's a known fact what,why,how we are suffering as an OFW. WAKE UP PNOY. Live up to your promise and the dreams of your parents for our beloved INANG BAYAN.

>>> you have a good point, but don't get discouraged, if I were you I will be the first one to avail from that P1B and make money out of it. Remember, not everyone knows how to make money out of the little that he has. So take advantage of it while it's there. Who knows that might be increased when they see that the fund utilization and the demand is high, much more if repayment rate is also high. These are good indicators that the program is effective to its targeted beneficiaries/borrowers.

>>> here we go again, another costly trial and error program and it is going to cost 1 billion pesos. when will this government ever learn on what should be really done. the government should look into improving the condition of those who are in the philippines. they should look into why filipinos are leaving the country to work outside. the value of the peso is appreciating but does the citizens of the country benefit from this - the answer is NO. as a matter a fact prices of commodities are just becoming higher and higher. basically citizens both in and out of the country are not benefiting from this. who is the beneficiary from this, the government and the businesses.

the government should stop making all of this temporary solutions (such as giving this 1 billion pesos for the ofw) and come up with a much more long term solution so that ofw's will be encouraged to go home and live in the philippines. let us be more realistic, what is 15,000 pesos going to start with? whereas there are people who have even invested millions of pesos in business that later did not succeed because large businesses eat up their market. the government does not have programs that protect small entrepreneurs, as they say "the small fish will just be eaten up by the bigger fish".

>>> the keyword in business is "competition", you need to be creative and be competitive in your chosen market or field. It doesn't matter if you are just a small fish, only those small fish who appear as a good meal to those big fish gets eaten alive! what I mean here is if Henry Sy's SM Mall is the big fish to you, don't become a sari-sari store beside the mall, but rather come up with very saleable products and become one of the suppliers to that one small outlet inside SM Mall that sells wares that carries similar product lines. That way the small fish never gets eaten, tendency is that small fish becomes big over time and becomes one of the tenants of SM. we Filipinos are survivors and we should start believing and behaving like so.

>>> This is true! and I DO AGREE!

>>> This is a good innovation and will be very helpful when put to good use, more so if the borrower-OFW knows how to make money out of it. But I have another suggestion for our OFW's: Why don't they group themselves as an association or cooperative and invest their money collectively into short-term but highly profitable ventures of some reputable companies, say in real estate.

You see this is what I do, and they can either copy it or invest in it. All it takes is P1.5M to build a townhouse (lot and permits included) which can easily sell at P1.95M under Bank or Pag-Ibig Financing which has become very affordable these days. BDO offers 7.75% rate per year. It's very easy to find a Buyer who is willing to start paying the 10% downpayment while the house is being constructed, agawan pa yan because this market segment is under-served.

Construction time takes around 4 months plus 1-2 months processing and delivery to the bank or Pag-Ibig. That means that the P1.5M will be spent over 4 months for the house construction, permits, etc. Assuming there are 20 OFWs who can agree to contribute to that Fund, it will only take P18,750 each per month or P75,000 total in 4 months from each and the house is done. Then you need another 1-2 months to process the buyer's housing loan with the bank or Pag-Ibig until the Letter of Guarantee and release of buyer's loans proceeds to the Seller.

That means that in 6 month's time their P75,000 seed money will earn another P22,500 that's around 30% gross earnings or P18,000 or 24% net income after taxes & fees. If it's a cooperative then they get to enjoy some tax exemptions. If they do it twice in a year their money can grow at a minimum of 40% to 50%, no wonder why real estate is the best investment. No time deposit rate or treasury bills or government notes or bonds can beat that, not even the stock market.

And this is not a make-believe tale because I am doing it for many years. Even if your house takes another 6 months to sell it won't hurt you because you will still make at least 24% more of your seed money. A big number of our people needs decent homes that are affordable and that's what we offer them. We make money by helping others fulfill their dreams. Our OFWs can do it too. That's the best way for them to get rich and gain financial freedom. The other choice is to doubt that this is a hoax and it's impossible...and then wonder how Senator Villar become a multi-billionaire (in pesos). Camella Homes (his low-cost housing business) did it for him.

>>> Your suggestion is good but I think it is not buy-able to general OFWs. No one can trust to anybody nowadays, esp. that we are abroad. That is why OFWs are very dependent to our government initiatives, because the government supposedly has the power to protect the interest of OFWs. OWWA supposed to be the one to implement these but how can we trust them. Every centavos that pass through them dissolved to their pockets... There must be a legislated body from our government to implement this, like establishing of OFW BANK thereby OFWs are the stock holders...

>>> That's understandable, but some have to start somewhere. The OFW bank is a very brilliant shot. But then again it has to be managed well so that the OFWs won't be at the losing end again. The key is good stewardship.

>>> This is a risky business, before going any further, launch a massive training campaign for returning OFW's. Kahit wala pa itong program na ito marami ng OFW ang nag attempt to venture into business but end up in a failure. So eventually bumalik sa abroad si kawawang OFW to start all over again. sympre para maka hiram dyan sa program na yan kailangan ng collateral. I dont agree with this. Kung ako sa inyo open up opportunities for OFW's like franchising, UV express services, poultry and livestock and lots more. I monitor yung start up while teaching them to to become successful entrepreneurs. Pls keep in mind that OFW's are employee oriented and not business oriented. Kung business oriented yang mga yan dapat hindi na cla nag abroad.

>>> Mr. President if you truly want to help OFWs please let your executive power to formulate and establish a OFW Bank where OFWs can be Stock holders...

>>> I like this comment mr john jones, a very brilliant one! That OFW bank can even be exempted by the Central Bank from putting upfront the required minimum capital to put up a bank, or if they can't be exempted they can be subsidized by the government then the OFW can buy shares of stocks ng subsidized OFW bank kahit paunti-unti until it becomes wholly owned by OFWs and government is out of the picture.Have it managed by professionals napakaganda. Banking is a very good business - you put up a branch, receive deposits and guarantee them to earn some 1.2% per annum but put these deposits in the money market the next day and earn at least 0.6% to 3% in a day! Do it 360 days in a year and that's a lot of money.

No wonder why most of the tall buildings along Ayala Avenue are owned by these banks! The answer is very easy - they guarantee 6.5% interest per year for 5-year time deposits but they don't tell you that they earned at least 300% every year from those deposits! Hehehe. This one is really really a brilliant idea. Bro. Eddie Villanueva advocated for it also. I hope your idea gets the ears of the President. Why not try to pitch it in at www.president.gov.ph, who knows?



>>> I support this idea.

>>> 1 billion!! BARYA!!!.. ibubulsa pa ng iba yan.

>>> relax lang po, instead of shooting down that idea, let's help them improve from there, and many will benefit. Because if they sense that the general reaction to this effort is negative baka di nila ituloy yan, sayang naman. Let's help.

>>> lumang tugtugin na ang mga pautang na yan. ang makinabang na naman ang mga may kakilala sa owwa.

>>> Sana naman hindi...

>>> it is a bit exaggerated to divide the 1b to the total number of OFW's abroad..first and foremost more than half of those in abroad or OFW's are not going to borrow from that scheme, they can afford not to..the good thing about it, is those unfortunate OFW's that despite the long tenures abroad is hindi maka-ipon dahil sa ang kinikita nila is kulang pa rin to provide for the needs of their families in the Philippines.

This schemes will help, the mechanics of this we'll probably get better as the process goes by. A group of friends can come up of some ideas to avail the 500k that they will start for something. We just only hope and pray that all those people that will run this project will give priority to the welfare of every OFW's that comes for their help and not on thier pockets.

Kudos to you Mr. Jones for the bright idea of banking..but I just notice that with all your multiple comments, you regarded to exaggerate the facts first before you come up with a good one...there's no problem on commenting but at least be realistic naman..you're an OFW I guess, so you know the facts about us better than they do... I still salute you for a bright idea!!!

>>> Sorry friend, I think I need some guidance sometimes, like you...Thank you...Yes, I think we will push for this idea of bank for OFWs.. I just do not know how this go through the knowledge of the President..I tried his contact website but I can not get through..

>>> Surely, this is another strategy by the concerned government organization such as OWWA/DOLE to justify any upcoming force contribution. I have been an OFW (OCW) for several years already since 1982. Let's be on guard for this new tactic especially this Administration which is questionable on its operation.

>>> i wish you started to become aware of all the government OFW projects ever since 1982 and not just started with this strategy as you called it. Why don't you guarded other OFW projects during Ramos, Estrada and Arroyo's administration? so that a guy like you did not work that long abroad and simply reaping the fruits of those past projects that has been all failed so far.

>>> I would like to avail of this loan when I go home in April 2011. My project would be Charcoal Briquetting-Conversion of Forest and Agricultural Waste Materials to Charcoal. This will benefit much the masses especially on the provision of cooking energy. I will create employment too for the mothers and youth. I will sell the product to the world market. Who is the contact person at OWWA for this loan? Hopefully they could grant me a loan for the provision of my operational needs!

>>> You are getting the message right, Dan Abj, while 95% of the comments here are all negative or pessimistic at the least. This is a good idea and it is very sustainable because your raw materials are readily available and your market is so huge. If the proceeds from that loan won't be enough, try making some arrangements for assistance from these groups:
1. CARD BANK
http://cardbankph.com
2. SMALL BUSINESS CORPORATION (a government corporation)
http://portal.sbgfc.org.ph/
3. CENTER FOR COMMUNITY TRANSFORMATION
http://www.cct.org.ph/
4. ICCP VENTURE PARTNERS
http://www.iccpventurepartners.../
5. AUREOS CAPITAL
http://www.aureos.com/region/a...
They will also provide you training on proper accounting and financial management, optimized processing, mechanization, even packaging and design. They do it because they want to ensure that you become successful especially because it is their money that is at stake.  They will also help you expand your market and increase your production capacity because they know that they will earn more when you borrow more when you want to expand your business. They genuinely help. No politics involved. I have proven that especially with CCT and SBC. Take it away from there bro. And keep succeeding while others complain.

>>> I think that is a good project idea.

>>> Mr President don't just wait that investors will come to the Philippines and invest. The Gov't and LGU should invest more on infrastructures to create job and business opportunities; education and skills development to give opportunities for all Filipinos to get a descent job; and improved peace and order. Mr President planned beyond your 6 yr term. Think long term. You are just protecting your approval rating if that's the way you think. Now, i begin to doubt with your plans... here and there what I hear from you are short term plans - OFW LOANS, CCT. Are you kidding us Filipinos? Reach out to Visayas and Mindanao, just to remind you that they part of the Philippines. I hope this comment will have your attention.

>>> This is good news. Finally, there's hope for OFWs. But I hope much more money can be alloted for microfinancing para sa mahihirap na di makaalis ng Pilipinas. Sila ang mas nangangailangan. At hindi lang dapat pera dahil masasayang lang. Instead of just handing out money, provide small baranggay seminars for maliit na negosyo, provide the tools and materials, and provide micro loans with very small interest. Make it tax-free. Make the application requirements not too difficult. Most importantly, make the application and approval process transparent and subject to random stringent audit para walang nabubulsa at walang ghost borrowers.

Microfinancing has been successful in impoverished countries like India. Even in some badly affected parts of the US, it is also established already. I'm sure it is already present in some areas of the Philippines. But I think the government has to be much much more aggressive para naman mas maraming makinabang.

>>> This article shows how out of touch Noynoy is with reality. The amount of 15k is too small for any business. A returning OFW already has more than that measly amount to star a business. 500k for a cooperative is unworkable since OFWs coming home are individuals looking for business ventures on their own.

But what can you expect from Noynoy who has never held on to a job. Who has never been independent nor has left his mother's house. Most likely has never thought about paying any household bills since he was born as these were taken cared of by his mother. In short walang alam si Noynoy sa buhay.

>>> then why do we Filipinos keep on voting people of the Philippine elite caste rather than those in the working caste?

>>> There's no such thing as caste here.. Communist propaganda is just imagined drawing a line between socio-economic level of people for it's means of infighting between them for their political benifit.. Here, caste are more of based in educational attainment and determination to reach a higher levels of income..

>>> Ginoong Pilipino maraming salamat po sa encouragements nyo dito. So far your comments were the most practical and do-able....only if the general overseas filipino workers open their minds to business and leave/forsake their simple mindedness and unite for progress we will see a new Philippines....why can't we not? i have observed koreans in the '90s and the reasons why they have Hyundai's, Samsung's and LG's because back then they formed the then KFSB - korean federation of small businesses....which gave birth to now giant korean companies that competes teeth to teeth with japanese giants like Sony, mitsubishi, toyota's. I remember well how my amazement to learn when one old korean man told me how he sacrificed sending his money back to his country whilst working in 'the Philippines' (road construction project in mindanao) and investing part of it in small businesses that now forms the Hyundai group of companies....the koreans love their families but certainly expressing love for their country the most by contributing to its progress through hardship and investment. With your idea Ginoong filipino....i resolved not to buy anymore 32" plasma tv's, ipod's, bling-bling that turns my money to waste...but start using my brain to let my hard earned money to work for me and my family...

>>> That's a good resolve sir! Well-funded ads are good at convincing us that the 32" plasma tv's, ipod's and other electronic bling-blings will make you happy and fulfilled and ahead of the rest. But yes it's never true, it's 100% marketing to maximize their "share of your pocket". The truth is you need to continue to look for money to pay all your monthly power and telecom bills and they even penalize you if you don't pay on time - and that's hard-earned money down the drain...monthly!

I was also like that before when I was single. I spent a lot, it seemed like I was not comfortable to see some big amount was still in my pocket, my actions before were like I was always out to empty my pocket...and then I would start saving all over again when I would realize that my money was gone. And then did that crazy habit again. But it's good that I learned to make money and grow money before it's too late.

The Filipino race is not poor, we are rich! The only thing against us is majority of our people don't know how to be good stewards of what was given to them, however small the amount is. Having money, big or small, but not growing it is not stewardship. Remember that guy in the Bible who was given 1 talent who never multiplied it, he got punished, and whatever small thing he had was taken from him and was given to the other guy who multiplies money the most.

Case in point: the credit card. Credit cards are good, so long as you are only using it for convenience, never for credit. Once personal finance management is loose or absent, then somebody else will manage it for you - to their advantage. And you will end up working for them. Whatever you mismanage, you will lose.

>>> 'The Filipino race is not poor, we are rich! The only thing against us is majority of our people don't know how to be good stewards of what was given to them, however small the amount is'   Good point Ginoong Pilipino....to follow that up, I would like to borrow a line from an old book The Richest Man in Babylon - that says 'Our prosperity as a nation depends upon the personal financial prosperity of each of us individuals' (authored by George S Clason, New York, 1926). I think...no, I believed the Philippines is poor because majority of the Filipinos are poor...and not because that the Philippines itself as a nation is poor - but as what you've said most of us were not good stewards.

But hey, the idea of creating/building a village for Foreign retirees struck a cord down my spine when you mentioned it as the same ideas touched my mind not long ago when me and my wife thinks of ways to scape the 'rat race'. I'm a British trained Radiographer and an Electrical Engineering Graduate in the Philippines same economic reasons majority of OFW's pushed me to work in Taiwan and South Korea and presently here in the United Kingdom. My wife has been a intensive care nurse since 90's and now holds a nursing senior position here in the UK.

The reason I mentioned this was not to brag our professional positions but to join you sir Pilipino to encourage many more kababayans to follow this tread and to sit down and discussed it with their peers and lets get this idea into reality...community for foreign elderly nationals and OFW BANK...
For start,we will held a small Filipino christmas party soon and I will personally make arrangement that this ideas be discussed in the event... Php 10,000/month? I think maybe more and still doable!!

>>> unfortunately, crab mentality is too ingrained in the Filipino mind that we can't get a decent cooperative going.

>>> Cooperatives are ineffective compared to corporations where there is order (not chaos), and it means all of the people who are best and diligent only can work here.. That's why lazy people are always protesting and demanding from labor unions.. Sowing chaos.

>>> If OFWs will unite their money to create businesses, that's far better than asking for loans. This happens in Taiwan, Korea, Japan, or China because they have foresights but never in PHL. Also their leaders will never offer loans like this 15K, they knew what's realistic & what's not. This loan program will only become a scheme to satisfy those who has an evil plan. Then why make programs like this when it's clear it will not really serve the OFWs? This clearly shows the kind of leaders we have so let's stop being proud of ourselves when comparing with others.

>>> It is better that OFWs will push the government for a dedicated OFW Bank and OFWs has a chance to become stock holders. In this way, it will be properly run and be protected by Philippines law. OFWs is sending $21B annually transactions with this money is enough to boost our shares and all the OFWs has a change to alleviate our financial securities.

>>> Another CFC yan, di Couple for Christ ha, kungdi Center for Corruption. Tulad ng CCT ni porky dinky at pork barrel ng mga tongresista.

>>> Some families in our Church are now earning P50,000 a month net of all expenses because of the help of Center For Community Transformation, and these folks used to live in the squatters colony not far from the Church building.

>>> sa mga OFW, ipunin na lang natin ng maayos ang ating pinag hirapan dito sa ibang bansa at gamitin sa tamang paraan, wag na tayong umasa sa gobyerno na wala namang naitutulong sa mga gaya natin. Magaling lang naman ang gobyerno pagdating sa remittance na pinadadala natin eh. Magaling lang naman sila sa usapin pagdating sa pera pero sa kapakanan ng mga OFW wala tayong maasahan. Kung gustong makatulong ng gobyerno sa taong bayan, create jobs so Filipinos won't leave the country (which is suntok sa buwan).

>>> Can one of us come up of a petition to NoyNoy to push through the idea of banking that Mr. Jones is proposing? I believed some guys here are banking expert..those who can formulate a banking schemes for OFW's that we can put our money with..a savings that will get an interest better than any banks in the Philippines can offer. I asked MetroBank for a time deposit and they offered only an interest of less than one percent per annum..that's too low...here in Qatar they are offering more than 3% on their esavings account...Maybe a better scheme that every OFW's deposit money could be use to a more profitable businesses and a good return for every depositors... Any banker here? please stand up! someone can come up for a petition and I for one will sign, am pretty sure more will do...

>>> It now seems like the OFW BANK IDEA is now gathering steam. I understand Banking & Finance, but I am no banker, but I can help pitch in some more ideas if others will volunteer. The government also has this idea but we need some push or even do it ourselves, collectively.
See these articles for reference:
1) Government Efforts along this line
http://globalnation.inquirer.n...
2) Private Efforts & Discussions on this move (I am not sue though if this is still moving, just check)
http://globalnation.inquirer.n...
3) More Discussions
http://cocoy826.wordpress.com/.../
To put up a decent bank, say a full commercial bank so that it can do business with OFWs, the required paid-up capital (cash capital) is P2.4B and it seems like a whooping huge amount, but it's not depending on one's perspective of things. It's just a number, and number problems can be solved by some analysis and playing with numbers - trust me because I'm a Civil Engineer. That P2.4B cash requirement can be had in 1-2 years and then you will have an OFW Commercial Bank, assuming that there are professionals who will handle this venture. How to do it? Here are some suggestions to consider:

1) If only there are 10,000 OFWs who will be willing to contribute to the Fund some P10,000 monthly for 2 consecutive years (that's 24 months) that OFW Commercial Bank should be up by 1st quarter of 2013.
2) We can put it up by 1st quarter of 2012 (or 1 year from now) if the 10,000 OFWs will be willing to increase the monthly contribution to P20,000 monthly for just 12 months; or get another 10,000 more OFWs (totalling 20,000 OFWs now) to contribute P10,000 monthly for 12 months and this Bank will be up by 2012. I am already assuming here that we can get fast approval from the Bangko Sentral through a Presidential directive or moral persuasion.

The big question is who will take care of the Funds? Do we have anybody whom we can trust with it? My answer is a big YES! Let's get people of propriety like Mike Enriquez, Mel Tiangco and other highly trusted public figures to head the Board of Trustees of this Fund which should be deposited in Land bank or other government owned bank so that the Filipino people will benefit from it. We can actually place the trust fund in any other prominent bank like BPI, BDO or Metrobank but it will be the Ayala's, the Sy's or the Ty's alone who will benefit from it while it is there held in trust.

Then when the Fund of P2.4B is made whole, we can now apply for a license from BSP with the assumption that there are able banking & finance professionals who are already hired as bank officers and executives to do the banking operations. The total amount you deposited under your name in the Fund shall be automatically converted into Common Shares of the Bank, and being the Bank owner now you will just need to wait for the annual dividend announcement and wait for your dividend check coming to you by secured mail.

And those who have no means yet to be part of the initial owners and original incorporators of the OFW Bank can actually join later by buying either the bank's common shares or preferred shares because the bank will still need more investments to be able to open more branches both locally and abroad. Some banking & finance professional may improve this idea from here. I have something here for your ready reference:
1. BASIC GUIDELINES FOR ESTABLISHING BANKS
http://cocoy826.wordpress.com/.../
2. BANGKO SENTRAL WEBSITE
http://www.bsp.gov.ph/
3. PHILIPPINE DEPOSIT INSURANCE CORPORATION
http://www.pdic.gov.ph/

>>> Sorry I pasted the wrong webpage address for BASIC GUIDELINES FOR ESTABLISHING BANKS, the right address should be http://www.bsp.gov.ph/download... I cannot edit the previous comment, nag error daw. Anyway... Sorry again for that wrong address pasted above.

>>> The article says the maximum loanable amount is P500,000 ($11,364) provided that the borrower is a group of OFWs, an association or a cooperative. Then here is my suggestion:  There is this sunshine industry here in the Philippines on Foreign Retirees. Retirees in the US receive around $1200 monthly for their needs (retirement home fees, medicines, care giving fees, etc.), and the old folks in the UK are even required to sell their properties to fund their retirement otherwise they will be assessed with high property taxes.

What do I mean here? These retired folks have an average of $1000 to $1500 to spend monthly but that amount is never enough for them because of the high cost of retirement living in the US and UK, they are barely surviving with that amount. But if they come to the Philippines for their retirement they will be living like Kings and Queens and Princesses because that amount is P44,000 to P66,000 monthly here that can cover decent housing and nutritious meal, weekend tours, live theater shows and full spa massage in between. I have known some of them, Germans, Japanese, Koreans, Americans and 1 Briton. And they are all happy living here with that kind of lifestyle.

So my suggestion is, OFWs working as caregivers, nutritionists, physical therapists can organize themselves and decide to come home and put up a Retirement Facility either for active retirees or assisted retirees, offer the same full range of retirement services that they can get in their home countries or even better and charge the same fees in Dollars, same as what they pay in their home countries. You see these OFWs will still work as nutritionists, caregivers, physical therapists, cooks, laundry maids and continue to earn in US Dollars or Euro or Yen, and yet they can come home to their beloved families to retire at night and have time for their families on weekends while the old folks are on tour!

Just inform me if any OFW group will seriously consider pursuing this idea because I will be very willing to share my professional services with them. I will even invest some amount for it. You can reach me at makabayangpilipino143@yahoo.com. If you don't believe this is doable, check this government website http://www.pra.gov.ph/main/abo... and check what they do and how they can help you with this idea.

If the problem is the budget for building a retirement village, that should not be a burden. There are foreclosed residential subdivisions here, several blocks of them, just make an arrangement with Pag-IBIG for a joint venture scheme so you don't need to pay them upfront. Then renovate these units to conform to the needs and requirements of the retirees, put some nice landscaping to make the community conducive to them and that's it. The expertise of our OFWs are needed here, we can't hire newly grad caregivers from here.

The advantage of the OFWs are they are already well-versed with the language, and are well adjusted to the customs, tastes and preferences and even the habits (both good & bad) of their patients. This is an innovative way of making money in Dollars and Euros at home. The laundry contractors can be their own husbands actually - janitors, gardeners, maintenance crews and their salaries will be in Dollars and Euros too!

We can even apply for a PEZA accreditation so we can operate it tax-free because it is considered as an export industry just like the call centers or BPO industry because we will only accept foreign retirees with Foreign Retiree's Visa anyway. May nakumbinse na po kaya ako?  Pag nabuo ito, the income stream is endless, it can only stop if we become inefficient or maging mas mura na tumira sa US or UK kaysa dito sa Pinas.

>>> This is no other than wasting the money and time only. For individual can borrow only P15,000? what is P15,000? ano sa palagay niyo klaseng business na pwede ipatayo sa 15,000?  Payo ko sa mga kababayan kung Filipino, wag kayo umasa kahit kanino or sa gobyerno natin, "Mag ipon kayo!" "Magtago kayo ng sweldo nyo!" "Wag nyo padala lahat ang sweldo nyo sa pamilya!", isipin niyo ang buhay niyo pag bumalik na kayo ng pinas! Wag madala sa mga USO na cellphone, laptop or kung ano ano pang bagay, every sweldo may binibili, BILHIN NYO LANG KUNG ANO KELANGAN NYO! sabi pa ni Ophra Winfrey "BUY WHAT YOU NEED NOT WHAT YOU WANT". Difference of NEED and WANT: NEED = ung mga kelangan mo lang sa buhay, tulad ng pagkain or ano man bagay na kelangan mo sa trabaho. WANT = Ang dami natin gusto, hindi maubos ubos. lahat gusto natin.
Salamat!

>>> thanks pilipino for the input...  the main problem of that is how to find a dedicated professional that will handle the coordination of the more than 10,000 OFW individuals who are willing to contribute to the fund, surely there will be that much number who is willing to take the risk if only their money is guaranteed that it will be manage properly.

How about a certain investment firm? A group of professionals who will handle an investment with a fee..they could surely come up for a proposal on how to properly set-up this kind of scheme and coordinate things with all the individuals involve. They can open an account to any bank that majority of OFW who wants to contribute chooses, manage the fund properly and at the same time will lobby the President and the BSP for any approval needed on the process. As you said to have it more credible, we could ask the services of the certain individuals to assist OFW's on this scheme.

Where will be the fee to the firm coming from?..it could be arrange that a certain percent of the total fund should go to them as a fee once the fund is already completed (two years is not that long). In return the certain percentage also could be added to the dividend of each pioneer member to cope with the amount that goes to the firm. Once the bank is already established, this very firm could be the one to handle every investment portfolio that the hired managers of the bank could invest into... i guess you are right it is just a number..what we need is more input and ideas from everybody here...can we make a website that every willing OFW's with the idea could go into? It will be a start up and the next move will be more easier...we all just have to put our heart into it.

>>> To Pilipino, Bilber and Mr_john_jones and to many others who thinks positively for better Philippines: Mabuhay po kayo!!  'The Filipino race is not poor, we are rich! The only thing against us is majority of our people don't know how to be good stewards of what was given to them, however small the amount is'

Good point Ginoong Pilipino....to follow that up, I would like to borrow a line from an old book The Richest Man in Babylon - that says 'Our prosperity as a nation depends upon the personal financial prosperity of each of us individuals' (authored by George S Clason, New York, 1926).

I think...no, I believed the Philippines is poor because majority of the Filipinos are poor...and not because that the Philippines itself as a nation is poor - but as what you've said most of us were not good stewards. But hey, the idea of creating/building a village for Foreign retirees struck a cord down my spine when you mentioned it as the same ideas touched my mind not long ago when me and my wife thinks of ways to scape the 'rat race'. I'm a British trained Radiographer and an Electrical Engineering Graduate in the Philippines same economic reasons majority of OFW's pushed me to work in Taiwan and South Korea and presently here in the United Kingdom. My wife has been a intensive care nurse since 90's and now holds a nursing senior position here in the UK.

The reason I mentioned this was not to brag our professional positions but to join you sir Pilipino to encourage many more kababayans to follow this tread and to sit down and discussed it with their peers and lets get this idea into REALITY... a community for foreign elderly nationals and OFW BANK...For start, we will held a small Filipino christmas party soon and I will personally make arrangement that this ideas be discussed in the event...Php 10,000/month? I think maybe more and still doable!! Please those who are interested and will make a start do it for our children's sake and our beloved nation!!!  keep me posted@ jappet21@aol.com; or
aurelio.petrache@suht.swest.nhs.uk

>>> Nice to know that you are an Engineer too! Engineers are known to be good at finding solutions. It's enough for engrs to know the desired outcome, and they will find solutions or ways to obtain that outcome. We call that in college days "problems" like finding the value of "X, Y and Z", but the fact is they were not really problems, they were just opportunities of arriving at precise solutions by juggling numbers in 10 x 12 or bigger number matrix and some analytical prowess and it's done! I enjoyed those things! And that training we can utilitize here.

Keep up gathering steam and continue to influence others to see that big picture. Kudos and Mabuhay mga kapwa kong magigiting na mga Pilipino. Thanks for the email address, I will keep in touch with you there but I will keep posting on this thread while the website is not yet up. Hope some will bookmark this page so they can come back here from time to time, natatabunan na rin po kasi ito ng ibang mas bagong balita.

>>> Theres no such thing as Filipino 'race', were heterogeneous country composed of different cultures, norms and sometimes bloodlines or we have the same blood as other 'races' such as Malaysians and Indonesians. Austronesian race is more applicable.. (I'm out of topic =))

>>> To be precise, there is really no single original race if we go by that definition because everybody, either white, brown, black, yellow, red and anybody in between, all came from Adam. Even Eve, the female man or female male, also came from Adam. Their immediate offsprings and grandchildren were the real original race.
Other "races" as we know them now are merely offshoots of that original one, implying therefore that all "races" aren't really pure, all are qualified to be heterogeneous too.

The American race? We know where they came from. The German race? We know who they were before, it starts with a big "B" and we often use that word when we describe some very negative acts. But the thing is, we are Filipinos. Mga Pilipinong mamamayan ng isang bayang magiliw at perlas ng silanganan, bayang duyan ng mga magigiting na lahing di nagpapasiil sa mga manlulupig!

Mga Pilipinong lahi ng isang bayan na kung saan ang bawat kislap ng kanyang watawat ay kislap ng bawat tagumpay na nagniningning, kung saan ni minsan ay hindi magdidilim ang pagningning ng kanyang araw at mga bituin. And I believe in that, it is actually a prophecy, a foretelling of the future that is ahead of us, done by José Palma in 1899. That great promise of the of the Filipinos is going to be realized. God intended us as a people to be one of the greatest in the world, not in terms of going to war and grabbing other nation's territories.

But God made us a friendly, happy and content people, He wants us to be a blessing to the world. In fact God invested so much for the Filipinos - He made sure we have over 1,700+ islands while others have none except being part of a big land mass shared by several nations. He made sure that our beaches are the longest in the world (country to country), and God hid so much precious metals and other minerals in our mountains and hills and valleys and plateaus and fertile plains for future use. And He made sure our seas and oceans and deep waters are filled with marine resources and He even deposited so much natural gas and petroleum beneath these deep waters.

See? We are a highly favored people. Tayo lang ang tanging lahi na pag nadulas at naputikan ay tahimik na tumatayo at pinupunasan ang putik sa ating damit. At pag napansin natin na meron palang nakakita sa ating pagkadulas, napapangiti tayo sa kanila, at napapangiti din sila. Di kaya ng ibang lahi yun, pag sa kanila nangyari yun nagmumura na sila ng katakot-takot. The word PILIPINO actually is PILIng-piling LIPI na PINOng-pino ang pagkalikha ng Diyos!  Get that one? Mabuhay ang lahing Pilipino at ang ating bayang Pilipinas.

>>> i would like to follow up the idea of banking...maybe there are some guys here working in an investment firm and can formulate a mechanics on how to establish this OFW BANK ...this is gaining momentum and am fully sure if we will unite on this, lots of us will be happy to see that we have a bank fully dedicated to us OFW's..BDO is now the largest and richest bank in the Philippines because of us OFW's, due to our remittances that more than 50% pass thru them, they invested our money, they took the profit for themselves, they don't even formulate something in return to us even a raffle ticket... it's about time and what we only need is someone with a full knowledge of the banking system..an employee of an investment firm and others that have more knowledge to this matters...i for one, i admit is an amateur in this one..the only thing i know is I put my money in the bank and check the interest..other than that I have no other idea.

Pilipino, Mr. John Jones, A. Petrache..we are already four who is advocating this thing, it only starts with a very bright simple idea that Mr. Jones suggested..if we are already 4, then more will come..and the more we grow, more good ideas will come. anybody interested please stand up!!

>>> Thanks Sir bilber for voicing out the possible general concerns of OFWs about their investments to this OFW Bank, I volunteered some suggestions above and I hope those concerns are taken cared of already, others can improve it from there. Keep it up Sir, Mabuhay po kayo!

>>> Sirs Aurelio Petrache, bilber, mr_john_jones, and to all Patriotic Filipinos:  We can get the OFW BANK and the FOREIGN RETIREES' VILLAGE operational by early 2012 or latest early 2013, the way these ideas are gathering momentum. What makes a person rich is not the money and material possessions that he has, what makes him rich are his ideas! Henry Sy started with nothing but look at him now. Our OFWs are not fully realizing their real potentials and economic power other than having increased our local consumer spending which is driving our local economy on top of increasing our dollar reserves which is keeping our economy afloat despite the gloomy economic environment globally.

This OFW BANK & FACILITIES FOR FOREIGN RETIREES will empower the millions of OFWs, big or small, and just imagine the economic ripple effect that their families will gain out of that. The OFWs will become an economic powerhouse!  I encourage others to be innovative in encouraging other's participation like what Sir Aurelio Petrache is planning to do this Christmas.

I have some people in mind who can effectively and efficiently operate the bank, some of them are in Citibank Phils & Hongkong, some are in BDO and BPI as bank executives; there are also those in some investment house - the idea will attact them dahil doon they are employees of the bank while with OFW BANK they will also be owners of the bank on top of being bank executives.

My suggestions are:
1) To enjoin GMA7 to be with us in this effort, which I don't think Atty. Felipe L. Gozon, the Chairman of the network, will refuse because he is also a Patriotic Filipino by heart. And the guy knows banking and finance because he was once a director of an international corporate bank. And the bonus of having Atty. Gozon with us is it will be easier to reach out now to other OFWs and encourage them to join in this effort because of our tri-media access through GMA TV Network and its subsidiaries. Who knows he might even offer it to us free of charge!

2) Other than Atty. Felipe L. Gozon, the Chairman of GMA Network, let's also get onboard Mike Enriquez, Mel Tiangco, retired Chief Justice Artemio V. Panganiban, former Monetary Board Chairman and Central Bank Governor Jaime C. Laya, and some others to become our Board of Trustees to oversee the Fund.

3) Open a Trust Account in Land Bank, through our Board of Trustees, where all OFWs can send their investments to this Account. My idea here is we should not send the P10,000 monthly to save on transaction fees but just save that amount monthly in our individual savings account and never touch it so that in 12 months (or 24 months) we will already have the money and send them to this Trust Account in Land Bank and voila! there will be that P2.4B or more in just like that!

This will also avoid anyone's apprehensions about how their money is doing because it is still with them habang binubuo and they will directly benefit from its interests. Habang binubuo yung whole contribution, they can individually decide either to put it in their regular savings deposit, personal time deposit (1 year term) or invest it in Treasury Bills (30 days, 60, 90 180 or 360 days maturity) or Government Bonds and Notes dahil siguradong walang lugi. Don't place them in mutual funds or corporate stocks just yet because if you are going to redeem them in a year or two lugi pa kayo.

We will do this while our application for an OFW BANK is being processed in the BSP, remember Mr. Jaime C. Laya is our former Central Bank Governor and everyone should be comfortable because he is an acclaimed expert in that aspect, and I think he still commands some respect from BSP executives, that should make things easier for us. And besides, are you aware that Mr. Jaime C. Laya is currently an Independent Director of GMA Network? That even makes life easier for us here. Aren't you excited?

3) With the former Supreme Court Chief Justice Artemio V. Panganiban being part of the Board of Trustees, we will be well advised and guided as to any legal concerns in putting up and operating the OFW BANK. Mr. Panganiban, by the way, is also another Independent Director of GMA Network, that fact again adds more excitement to me! These are people of unquestionable character, and with superb accomplishments in terms of public service.

And I am comfortable that they will just make do with a meager amount of allowance per dime that we can afford, or who knows they might just be happy with a very warm "Maraming Salamat Po!" for their selfless service for the Filipinos, because 1.3M OFWs x 5 in a family is 6.5M, ganun kadaming mga Pilipino ang magpapasalamat sa kanila. Pag nagkataon po, malamang sila ang magiging mga Bayani ng mga Bagong Bayaning OFW!

I will try to set up a website discussion board and I will announce it here once it is up. I am really passionate with this ideas, especially with Sirs Aurelio Petrache, bilber, mr_john_jones and many other patriotic Filipinos around. There are so many things we can do to make the OFWs collectively as an economic powerhouse! The OFW BANK & the RETIREMENT VILLAGE are just a few. Other ideas that are worth considering:

1) Our OFWs buy their House & Lots from other big developers, why not become the REAL ESTATE DEVELOPER ourselves! The OFW housing market will be buying from their own real estate company and they will retain the profits! I mean the gross profit rate in real estate is around 40% - 60% and that will go back to you as your gross income! Are you seeing what I am seeing at? I can help here because this field is one of my expertise - from assessment of property potential to project study to planning to permits to start up and execution and marketing and project financing and delivery and completion.

Again, like what Sir Aurelio Petrache said, hindi po tayo nagyayabangan dito, I am just saying that I am willing to help and contribute whatever I know I can do well. You see, if Senator Villar is able to list his Vista Land (a holding company of several businesses) in the Philippine Stock Market we can also do that in due time. And because our clients will be mostly OFW-members then we can even qualify for tax exemptions if we do it the Cooperative Way of doing business. Please check the following resources for your ready reference on cooperatives:
a) http://globalnation.inquirer.n...
b) http://www.cda.gov.ph/website/...
c) http://www.cda.gov.ph/website/...#

2) Another possible venture is putting up a school, from Prep to High School, and that can be put up right beside your real estate developments because the OFWs wants to send their kids to the best schools, so let's make that OFW-Owned School one of the best schools, we can hire the best teaching professionals from UP, La Salle, Phil. Women's Univ, etc. And again, the income stream here is endless. So long as there will be new babies born you won't run out of enrollees!

>>> Go Mr. Pilipino, count me in..I will start setting aside an account for just that purpose and you can rest assured that once the mechanics of that scheme is ready I will be one of firsts to come at your request... my personal email--danndacillo@yahoo.com..

>>> Thanks for that added push Sir bilber, and many thanks for the trust - for giving me your personal email ad. I will also keep in touch with you there but will keep posting my mind here. Mabuhay po kayo.

>>> HIGH FIVE TO YOU SIR ! You need to continuously find out ways on how to bring home and keep the OFWs for good at home. I'll pray for it's success. 

The last entry here was on 8:30PM of December 8, 2010 as copied from http://www.gmanews.tv/story/207642/aquino-sets-up-p1-billion-loan-program-for-returning-ofws. Some other more controversial news headlines that are bannered on the frontpage of www.gmanews.tv and I don't want these productive comments lost in oblivion that's why these are posted here for many other OFWs to read.

Some other comments that may sound different from the pack are there to provide relevance and give some spice and more excitement to the discussion thread. CLICK HERE to read other similar strong comments.

The long-time aspirations of our OFWs to have an OFW BANK can take off in a matter of time once the idea gathers strong support from the OFW Community. And that strong support and commitment to putting up this Bank shall be measured by how soon and how much do we save out of the money we earn to ultimately become our investment to this BANK. There is no stronger commitment than the Dollars, Euros, Pesos, Dinars, Rials and other currencies that you specifically spared for this great purpose. The OFW BANK will make you rich by the way. That's for sure.

Please share your ideas since this free website is set up for that purpose - to encourage the exchange of ideas to realize the OFW BANK. You can share your comments below or send email to the moderator by clicking HERE. Please share your ideas and technical know-how and give suggestions on how to setup the OFW BANK.

To learn more about other business ideas for incubation, please check it out from here.

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