Presented by:Group No. 5

Export Credit Guarantee Corporation of India Limited, was established in the year 1957 by the Government of India to strengthen the export promotion drive by covering the risk of exporting on credit.

To support the Indian Export Industry by providing cost-effective insurance and trade-related services to meet the growing needs of the Indian export market through the optimal utilization of available resources.

No. of offices No. of offices :: 5 Regional offices and 51 5 Regional offices and 51

Branches ( Head Branches ( Head

office and office and all Branches ISO all Branches ISO

certified)certified) Paid Up CapitalPaid Up Capital :: Rs. 900 Cr.Rs. 900 Cr. ReservesReserves :: Rs. 913.42 Cr. as on 31Rs. 913.42 Cr. as on 31stst

March 08March 08 IRDA registered Insurance company classified IRDA registered Insurance company classified

under General Insurance-Specialised Institutionunder General Insurance-Specialised Institution

Premium Income : Rs. 744.59 Cr. Claims paid : Rs. 450.62 Cr. Recoveries : Rs. 252.80 Cr. No. of Policies in force : 13,371 No. of shipments covered : 3,45,232 No. of buyers covered : 44,766 No. of countries covered : 188 No. of banks holding covers : 68 No. of bank branches covered : 3,721 No. of exporters financed by banks : 30,968

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

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

RISKS

COUNTRY BUYER BANK

COMMERCIAL RISK POLITICAL RISK

Commercial Risks

‣Insolvency of buyer/LC opening bank

‣Protracted Default of buyer

‣Repudiation by buyer

Political Risks‣War/civil war

/revolutions‣Import restrictions‣Exchange transfer

delay/embargo‣Any other cause

attributable to importing country

Risks even at the best of times War or civil war may block or delay

payment Insolvency of buyers

Standard Policy Specific Shipment Policy Export Turnover policy Specific buyer wise policy Consignment export policy Customer specific policy

Shipments (Comprehensive Risks) Policy, commonly known as the Standard Policy, is the one ideally suited to cover risks in respect of goods exported on short-term credit, i.e. credit not exceeding 180 days.

This policy covers both commercial and political risks from the date of shipment.

ECGC normally pays 90% of the loss

Exporter has to bear remaining 10%

Specific Shipment Policies - provide cover to Indian exporters against commercial and political risks involved in export of goods on short-term credit not exceeding 180 days.

It is issued for a particular shipment sent to a particular buyer.

80% paid by ECGC

20% born by Exporter

Where Indian companies conclude contracts with foreign principals for providing them with technical or professional services, payments due under the contracts are open to risks similar to those under supply contracts. In order to give a measure of protection to such exporters of services, ECGC has introduced the Services Policy

Specific Services Contract (Comprehensive Risks) Policy

Specific Services Contract (Political Risks) Policy

Whole - turnover Services (Comprehensive Risks) Policy

Whole - turnover Services (Political Risks) Policy

Special Schemes

The confirming bank will suffer a loss if the foreign bank fails to reimburse it with the amount paid to the exporter.

The Transfer Guarantee seeks to safeguard banks in India against losses arising out of such risks

By ECGC Up to 90% if Loss due to political risks Up to 75% if loss due to commercial risks

By Bank Remaining % in both risks

It is Given by ECGC for any investment made by way of equity capital or loan for the purpose of setting up or expansion of overseas projects.

The investment may be either in cash or in the form of export of Indian capital goods and services.