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

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

3. 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)

4. Brief History
Set up
on
31.07.1957
1957 –
Export Risks
Insurance
Corporation
[ERIC]
1964 –
Export
Credit &
Guarantee
Corporation
Limited
[ECGC]
1983 –
Export
Credit
Guarantee
Corporation
of India
Limited
2014 –
ECGC
Limited

5. 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

7. 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.

8. – 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

9. 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

12. Conclusion
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..