ECGC

ECGC

1. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
WELCOME
TO A PRESENTATION ON
CREDIT RISK IN EXPORTS
AND
ROLE OF ECGC
BY SMT.ARPITA SEN
SENIOR MANAGER
Agartala
15.7.2010

2. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
ECGC Mission
To supportthe Indian export
industryby providing cost effective
insuranceand trade related
services to meet the needs of the
Indian exporters

3. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
OBJECTIVE of ECGC
ToPROMOTEEXPORTSMainlyby
•ProtectingExportersagainst
COMMERCIAL &POLITICALRISKSIn
realisingexportproceeds
•ProtectingBanksagainstRISKOF
DEFAULTINEXPORTCREDIT
•ProtectingInvestorsagainstPOLITICAL
RISKSinShareholders’equityandloanIn
overseasinvestments

4. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
ECGC Fact sheet
•Established in 1957
•Fully owned by GOI
•Under administrative control of MOCI
•Capital Base
•Highest ICRA rating of IAAA
•5 Regional Offices and 51 Branch Offices
•All Branches ISO 9001:2000 certified

5. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Key Financial Indicators of ECGC
Particulars
2007-08
(Audited)
2008-09
(Audited)
2009-10
(Audited)
Premium
Income
668.36 744.68 812.99
Claims Paid 420.01 451.41 641.72
Recoveries
Made
161.50 208.58 133.31
Figures in Rupees crores

6. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
What is Credit Risk
•Definition:Thepotentialthatadebtorwillfailto
meetitspaymentobligationsinaccordancewith
agreedterms.
•Exportcreditrisk:
a)Buyerrelatedproblems
b)Countryrelated

7. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
PAYMENT RISK
RISK MANAGEMENT IN EXPORTS
Goods Receivables
Exchange
Risk
Loss or
Damage
Marine
Insurance
Hedging by
Authorized
Dealers
CREDIT
INSURANCE

8. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
LC
Payment Risks
POLITICAL RISK
COUNTRY
BUYER BANK
LC / NON –LC
COMMERCIAL RISK
Payment Risks

9. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
War, Civil
war, Internal
disturbances
exchange
transfer
blockages
/delay
New import
restrictions,
cancellation of
import licence,
etc.
Risks covered -Political
Diversion of
voyage due
to war

10. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Insolvency of
buyer/bank
Non
acceptance
of exported
shipment
Default of
buyer/bank
Risks covered-Commercial

11. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Risks NOT considered Credit risk
•Non fulfillment of contractual obligations by exporter
including quality dispute.
•Default or insolvency or any omission /commission of any
agent of exporter/ buyer
•Failure of buyer to obtain necessary approvals for
imports
•Causes inherent in nature of goods
•Exchange fluctuation risks
•Physical loss/damage to goods

12. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Principles of Credit Insurance
•Good Faith
•Co-insurance
•Spread of risks

13. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Buyer & Country Underwriting
•The 2 pillars of Export Credit Insurance :
and
Buyer
Underwriting
that assesses
buyer risks
Country
Underwriting
that assesses
country risks

14. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Products offered to Exporters
Declaration Based Policies
Whole Turnover
1) Standard Policy
2) Small Exporters Policy
3) Export Turnover Policy
Specific transaction
1) Specific Shipment Policy
2) Specific Buyer Policy
3) Transfer Guarantee (for Banks)

15. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Products offered to Exporters
Exposure Based Policies
1)Single Buyer Exposure Policy
2) Multi buyer Exposure Policy
3) SME Policy

16. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Products offered to Exporters
Consignment Based Policies
1) Consignment Export Policy
2) Global Entity Policy

17. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Products offered to Exporters
Covers for IT/ITES industry
1) Software project exports policy
2) IT enabled (single customer) policy
3) IT enabled (multi customer) policy
1) Customer Specific Policy
Customised (Tailor Made) Policies

18. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Premium Structure Basis
•Country Grouping -7 fold (237 countries)
( A1, A2, B1, B2,….. D)-Higher the
country group, lower the premum rates
•Terms of Payment-More superior the
payment terms, lower the premium rate
•Specific approval required for Restricted
Cover countries ( 33 countries )

19. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Shipments (Comprehensive Risks) Policy
•Whole Turnover principle
•Selective options for exclusion-
LC/ Associates/ Consignments
•90% cover
•Minimum premium of Rs.10,000/-
•Policy Period -2 years
•Buyer wise Credit limit
•Discretionary limit
•Monthly declarations No Claim Bonus –
yearly 5%; max 50%

20. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Small Exporters Policy
•Export turnover not exceeding Rs.50 Lakhs
p.a.
•Minimum Premium Rs.2000/-
•Policy Period -one year
•Higher percentage of cover-
Commercial risks 95%; Political risks
100%
•No Claim bonus
•Quarterly Declarations

21. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Specific Shipment Policy (SSP)
•Covering one shipment or One contract
•Processing fee of Rs.1000/-
•80% cover
•Premium higher than standard premium rates
•Upfront premium before issue of Policy
•Commercial / Political risks and L/C
comprehensive risks covered
•Submission of Shipment Statement and
realisation report

22. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
SME POLICY
•For exporters with Export Turnover not
exceeding Rs10 Lakhs andregistered under
MSME Act, 2006
•Cover available upto Rs10 lakhs.
•Annual premium Rs 5,000 and processing
fee of Rs1,000
•90% cover
•Maximum claim payable is Rs3 lakhs on any
buyer
•No requirement of monthly declaration of
shipments

23. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
Export Credit Insurance Covers to Banks
•Covers for working capital granted by
commercial banks to Exporters at Pre shipment
and Post shipment stages
•Covers against non-fund based facilities for
exports.
•Covers available on exporter wise, bank branch
wise and bank wise
•Losses due to protracted default / Insolvency of
exporters covered
•Cover varies from 60% to 90% depending on the
type of cover

24. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover the You focus on exports. We cover the risks.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED
In the Service of Exporters and
Banks since 1957
Thank You
Please visit us at: www.ecgc.in
: [email protected];[email protected]