ExportCreditGuaranteeCorporationof IndiaLimited was established in the year 1957 by the Government of India to strengthen the export promotion drive by covering the risk of export on credit. This organisation offers a range of services to exporters. They are as mentioned below:
1.
It provides credit risk insurance covers to the exporters against there loss in export of goods and services.
2.
It offers guarantees to the banks and financial institutions in order to enable the exporters to obtain better facilities from them.
3.
It provides Overseas Investment Insurance to the Indian companies investing in joint ventures abroad as equity of loan
Functions: - Being essentially an export promotion organization, it functions under the administrative control of the Ministry of Commerce & Industry, Department of Commerce, and Government of India.
Managed by: - ECGC is managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, Banking, Insurance and Export business community. 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.
What does ECGC do?
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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
How does ECGC help exporters?
ECGC
I
Offers insurance protection to exporters against payment risks
II
Provides guidance in export-related activities
III
Makes available information on different countries with its own credit ratings
IV
Makes it easy to obtain export finance from banks/financial institutions
V
Assists exporters in recovering bad debts
VI
Provides information on credit-worthiness of overseas buyers
