ECGC

Explains history of ECGC, Risks covered under ECGC, Role in Export finance

1. Points to be argued What is “ ECGC ”? Brief History Risk Covered under ECGC Role of ECGC in Export Finance Risk Management in Exports

2. ECGC A company which provides cover to exporters against many kind of risks . Owned by Govt. of India Head office in Mumbai, Maharashtra and branches all over the country . Formerly known as Export Credit Guarantee Corporation of India Ltd . (until Aug 2014)

3. Brief History

4. RISKS COVERED - L/C Opening Bank Risks - Political Risks - Commercial Risks POLITICAL RISKS Import Restrictions War/ Civil war/ Revolution Additional Freight or Insurance charges Any other cause attributable to other country . COMMERCIAL RISKS Insolvency of the buyer Protracted default of the buyer Buyer’s failure to accept the goods

5. Role of ECGC in Export Finance Providing export credit insurance covers to Banks & FI’s to enable exporters obtain better facilities from them . Providing export credit insurance covers to Exporters against loss in export of goods as well as services under many different policies Offers guarantees to banks and financial institutions to enable exporters to obtain better facilities from them. Provides Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan and advances.

6. 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 for exporters to obtain export finance from banks/financial institutions Assists exporters in recovering bad debt Provides information on credit-worthiness of overseas buyers

7. Present Scenario ECGC is the fifth largest credit insurer of the world in terms of coverage of national exports. The present paid-up capital of the company is Rs.1000 crores and authorized capital Rs.5000 crores. First overseas office of ECGC in London on September 17, 2013 . ECGC has achieved a magical milestone of Rs.1000 Crores of premium income

8. C onclusion The ECGC helps by providing insurance cover in respect of risks in export trade. These risk may include loss of money on account of foreign buyer becoming bankrupt or sudden import or exchange restrictions resulting in stopping of payments etc..