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7/28/2019 ECGC Slide Share
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GROUP IV
Presented By
Saumil Joshi (97)
Shipra (98)
Sneha Sadani (100)
Terry Rae (101)
Vivek Khatri (102)
Ambika Negi (103)Ankita Chhajlani (104)
Kisan Agarwal (106)
Suyog Manwatkar (107)
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What is ECGC?
Export Credit Guarantee Corporation ofIndia Limited.
Established in the year 1957 by the
Government of India.
An export promotion organization which
functions under Ministry of Commerce &
Industry, Department of Commerce,Government of India.
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ABOUT ECGC
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.
Authorized capital Rs.1000 crores.
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Functions of ECGC
Provides a range of credit risk insurance covers toexporters against loss in export of goods and services.
Offers guarantees to banks and financial institutionsto enable exporters to obtain better facilities fromthem.
Provides Overseas Investment Insurance to Indiancompanies investing in joint ventures abroad in theform of equity or loan.
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Foreignbuyer
unable
to pay
Protracted
Default of
Buyers
Risk
Of
Insolvency
Balance
of payment
problems
Coup
or
insurrection
Outbreak
of war
or civil war
Political
&
Economic
changes
RiskAssociated
With
Exports
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ECGC Policies
Specific Policy
For exports under
Deferred Payments,
Project Exports,
Service exports
Standard Policy
For short term
shipments
(180 Days)
Financial
Guarantees to
Banks
For
Giving creditto exporters
Special
Schemes(Transfer Guarantee )
To protect Banks
Issuing L/C,
Confirming L/C,
Insurance Cover,
Line of Credit,
Overseas InvestmentInsurance & Exchange
Fluctuation Risk
Insurance
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Standard Policy-Products
Small Exporters Policy
Period of Policy: Twelve months asagainst 24 months in the case of Standard
Policy.Minimum Premium: Premium payablewill be determined on the basis of
projected exports on an annual basissubject to a minimum premium of Rs.2000/- for the policy period
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Export Turnover Policy :
Turnover policy is a variation of the standard
policy for the benefit of large exporters who
contribute not less than Rs.10 lacs per annumtowards premium.
Thus all the exporters who will pay a premium
of Rs.10 lacs in a year are entitled to avail ofit.
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Specific Shipment Policy -
Products
Short Term (SSP-ST)
Export (Specific Buyers) Policy
Specific Shipment (Comprehensive Risks)
Policy
Specific Shipments (Political Risks) Policy
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Service Policy Products
Specific Services Contract(Comprehensive Risks) Policy
Specific Services Contract (Political Risks)
Policy
Software Project Policy
IT-enabled Services (Specific Customer)Policy
Construction Works Policy
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Guarantees to Banks
Packing Credit Guarantee It helps the exporter to obtain better facilities
from their bankers.
The Guarantees assure the banks that, in the
event of an exporter failing to discharge his
liabilities to the bank, ECGC would make good a
major portion of the bank's loss. The bank is required to be co-insurer to the
extent of the remaining loss
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Export Finance Guarantee
This guarantee covers post-shipment
advances granted by banks to exporters
against export incentives receivable in the
form of cash assistance, duty drawback,etc.
The premium rate for this guarantee is 7
paisa per Rs.100 per month and the coveris 75 percent.
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Special schemes
Transfer Guarantee
Overseas Investment Guarantee
Exchange Fluctuation Risk Cover
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Application Process: ECGC
Application to the ECGC alongWith Rs. 10,000 as initial premium
A statement to be submitted to the ECGCEvery month along with last months
Statements & the monthly insurance
Premium cheque (mandatory)
The list of exports also includes the value of export
Shipments & insurance premium to be paid
This is the general process to avail the services of ECGC
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Contd
Application is to be made to ECGC in case of
non- receipt of payment within 4 months from
the due date
Documents required as proof E-mails
Faxes
Reminders sent through banking channel
In case of suspicion or fraud, ECGC can blacklist the
importer or exporter
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THANK YOU