ECGC The Government of India set up the Export Risks Insurance Corporation (ERIC) in July 1957 in order to provide export credit insurance support to Indian exporters. It was transformed into Export Credit & Guarantee Corporation Limited (ECGC) in 1964. To bring the Indian identity into sharper focus, the Corporation's name was once again changed to the present Export Credit Guarantee Corporation of India Limited in 1983.
ECGC is a company wholly owned by the Government of India. It functions under the administrative control of the Ministry of Commerce and is managed by a Board of Directors representing Government, Banking, Insurance, Trade, Industry, etc. 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.800 crores and authorized capital Rs.1000 crores.
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 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. What does ECGC do?
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 Provides information on credit-worthiness of overseas buyers How does ECGC help exporters?
Payments for exports are open to risks even at the best of times. The risks have assumed large proportions today due to the far-reaching political and economic changes that are sweeping the world. An outbreak of war or civil war may block or delay payment for goods exported. 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. Need for Export Credit Insurance
In addition, the exporters have to face commercial risks of insolvency or protracted default of buyers. The commercial risks of a foreign buyer going bankrupt or losing his capacity to pay are aggravated due to the political and economic uncertainties. Export credit insurance is designed to protect exporters from the consequences of the payment risks, both political and commercial, and to enable them to expand their overseas business without fear of loss.
Maturity Factoring Overseas Investment Guarantee Exchange Fluctuations Risk Cover Export (Specific Buyers) Policy Post-Shipment Export Credit Guarantee Construction Works Policy Buyer Exposure Policies Transfer Guarantee Export Performance Guarantee ECGC Schemes
Export Finance (Overseas Lending) Guarantee Software Project Policy Insurance covers for Buyer's Credit and Line of Credit Service Policy Consignment Exports Policy (Stockholding Agent and Global Entity) Export Production Finance Guarantee Specific Policy for Supply Contract Specific Shipment Policy - Short Term (SSP-ST) SCR or Standard Policy
Export Turnover Policy IT - Enabled Service (Specific Customer) Policy Small Exporters Policy Packing Credit Guarantee Export Finance Guarantee
The Generalized System of Preferences, or GSP, is a formal system of exemption from the more general rules of the World Trade Organization (WTO). Specifically, it's a system of exemption from the most favored nation principle (MFN) that obligates WTO member countries to treat the imports of all other WTO member countries no worse than they treat the imports of their "most favored" trading partner. GSP
GSP exempts WTO member countries from MFN for the purpose of lowering tariffs for the least developing countries (without also doing so for rich countries). The idea of tariff preferences for developing countries was the subject of considerable discussion within UNCTAD in the 1960s. In 1971, the GATT followed the lead of UNCTAD and enacted two waivers to the MFN which permitted tariff preferences to be granted to developing country goods. Both these waivers were limited in time to ten years.
In 1979, the GATT established a permanent exemption to the MFN obligation by way of the enabling clause.