Export Credit Raunaq
Export Credit Raunaq
Export Credit Raunaq
Raunaq Singh
ECGC : AN OVERVIEW
The ECGC Limited (Formerly Export Credit
Guarantee Corporation of India Ltd) is a company
wholly owned by the Government of India based
in Mumbai, Maharashtra.
It provides export credit insurance support to
Indian exporters and is controlled by the Ministry
of Commerce.
Government of India had initially set up Export
Risks Insurance Corporation (ERIC) in July 1957.
About ECGC
It was transformed into Export Credit and
Guarantee Corporation Limited (ECGC) in 1964
and to Export Credit Guarantee Corporation of
India in 1983.
ECGC Ltd is the seventh largest credit insurer of
the world in terms of coverage of national exports.
The present paid-up capital of the company is Rs.
1200 crores
Authorized capital Rs.5000 crores.
What does ECGC do …
Provides a range of credit risk insurance covers to exporters
against loss in export of goods and services
Offers guarantees to banks and financial institutions to
enable exporters obtain better facilities from them
Provides Overseas Investment Insurance to Indian
companies investing in joint ventures abroad in the form of
equity or loan.
Economic difficulties or balance of payment problems may
lead a country to impose restrictions on either import of
certain goods or on transfer of payments for goods
imported.
How does ECGC help exporters ?
Offers insurance protection to exporters against payment
risks
Provides guidance in export-related activities
Makes available information on different countries with its
own credit ratings
Makes it easy to obtain export finance from banks/financial
institutions
Assists exporters in recovering bad debts
Information on credit-worthiness of overseas buyers
Political
&
Economic
Foreign changes Outbreak
buyer
of war
unable
or civil war
to pay
Risk
Associated
Protracted With Coup
Default of Exports or
Buyers insurrection
Risk Balance
Of of payment
Insolvency problems
Risk Covered …
Buyers Risks
Insolvency
Protracted Default
Contract Repudiation
Bank Risks
Insolvency of the Bank
Protracted Default
Risk Covered (Contd..)
Political Risks
Inconvertibility
Contract Frustration
Contract Cancellation
Import Restriction
Shipment Diversion
Risk Not Covered …
Commercial disputes
Causes inherent in the nature of goods
Buyer’s failure to obtain Import license
Insolvency/default of Agents
Risks covered by other general Insurers like
transit loss etc.
Exchange rate fluctuation
Failure of Exporter to fulfill terms of contract
Various Products …
Standard policy
Small Exporters policy
Export Turnover policy
Export (Specific Buyer) Policy
Specific Shipment Policy
Services Policy
Software policy
project policy
IT enabled service policy
ECGC Policies
Special
Schemes
Financial (Transfer Guarantee )
Standard Policy Specific Policy Guarantees to To protect Banks
Banks Issuing L/C,
For short term For exports under Confirming L/C,
shipments Deferred Payments, Insurance Cover,
(180 Days) Project Exports, For
Line of Credit,
Service exports Giving credit Overseas Investment
to exporters Insurance & Exchange
Fluctuation Risk
Insurance
Standard Policy-Products
Small Exporters Policy
THANKYOU !!!