Export Credit Guarantee
BUSINESS ASPECTS IN BANKING AND INSURANCE
Shashank Agarwal (2)
Harsh Aladia (4)
Roven Dsouza (27)
Jash Gada (29)
Saloni Jain (37)
Mili Madani (51)
Concept behind creating ECGC
Boost export promotion by covering the risk of exporting on credit.
Acts as a protection against loss
Shift focus on business related activities rather than payment issues.
Role of ECGC
To promote exports mainly by
• Protecting Exporters against commercial and political risks in realizing export proceeds
• Protecting Banks against Risks of Default in export credit
• Protecting Investors against Political risks in Shareholders’ equity and loan in overseas investments
Specific Functions of ECGc
1. Insurance coverage for those exporters who are entering in international trade for the first time
after economic liberalizations.
2. First- hand information in export-realted activities, particularly in areas of potentail risk associated
with countries and mode of payment in globally changing trade regime and offer such guidance to
3. Through its network with other credit risk agencies in the world, it publishes information on risk
perception on different countries with its own credit ratings
4. Facilitator in obtaining export finance from banks and financial institutions through various
5. Helps in recovery of bad debts from defaulters by helping them precede legal and diplomatic
6. Database of exporters and and importers and shares creditworthiness.
7. Customized products to exporters.
How is it helpful for the exporters?
Helps in expansion of sales
Protects exporter against bad debts.
Credit facilitation and boost borrowing power
Stabilize and assure cash flow.
Explore and develop new markets.
Protection againts corporate insolvency, bankruptcy.
Helps in dealing with concerned country’s courts and administration of recovery order.
Attributes towards success
5 Regional Offices and 51 Branch Offices
All Branches ISO 9001:2000 certified
Member of Berne Union(53 members from 42 countries)
MOU with GOI
Authorized capital of Rs. 1000 crores and paid-up Rs. 900 crores.
Alliance with Coface (France), D&B
Registred with IRDA
Accredited with “iAAA” by ICRA
GOI instilled confidence by estblishing NEIA(National Export Insurance Account) with corpus of Rs. 2000 crores.
Tie-up with NSIC (National Small Industries Corporation)
Fulll-fledged Factoring services.
Two pillars of Credit Insurance
Limit fixed on Buyer
Buyer Risks Bank Risks
Insolvency of the bank
import license, etc.
For exports under
For short term
(Transfer Guarantee )
To protect Banks
Line of Credit,
Insurance & Exchange
Products offered to Exporters
Declaration Based Policy
Exposure Based Policy
Consignment Based Policy
Covers for IT Industry
Small Exporters Policy
Specific Shipment Policy
Benefits to Exporters
Protection for account receivable
Reduction in Bad debt
Improvement in quality of financial planning
Enhancement in risk taking capacity
Easy access to bank finance on liberal terms
Benefits to Banks
Contract of insurance between bank & ECGC
Protects banks against losses in export credit due to
- Insolvency of exporter
- Protracted default of exporter
Protection For Pecuniary Liabilities
Enables To Waive Collateral Securities
Lesser Capital Deployment requirement.