Export Credit Guarantee

Corporation of India
Presented by:-
MEHUL SONI - 551
Presented to:-
Prof. Kavita Shah
Contents
Introduction
A Brief Profile of ECGC
What does ECGC do?
Risk covered by ECGC
Premium
The covers offered by ECGC
Bibliography
Introduction
TheECGC Limited(Formerly Export Credit Guarantee Corporation
of India Ltd) is a company wholly owned by theGovernment of
Indiabased in Mumbai,Maharashtra.

It provides export creditinsurancesupport to Indian exporters and

is controlled by theMinistry of Commerce.Government of India
had initially set up Export Risks Insurance Corporation (ERIC) in
July 1957.

It was transformed into Export Credit and Guarantee Corporation

Limited (ECGC) in 1964 and to Export Credit Guarantee
Corporation of India in 1983.
 A Brief Profile of ECGC
No. of offices 5 Regional offices and 51 Branches
Paid Up Capital Rs 900 Cr
Reserves Rs 913.42 Cr
IRDA registered Insurance company classified under General Insurance

specialized Institution
Premium Income Rs 668.36 Cr
Claims paid Rs 419.74 Cr
Recoveries Rs 161.50 Cr
No. of Policies in force 12533
No. of shipments covered 364848
No. of buyers covered 46799
No. of countries covered 193
No. of banks holding covers 65
No. of bank branches covered 3709
No. of exporters financed by banks 20568
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
Risks Covered by ECGC
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

Premium
The premium rates depends on the country to
which exports are made and the period of
repayment.

At least 20% of the total amount of premium

should be paid in advance. The balance amount of
premium may be paid on a quarterly basis in
proportion to the amount of credit disbursed.
Bibliography
https://www.ecgc.in

Introduction to foreign trade, foreign

exchange & risk management
By R.H SARMA