ECGC Slide Share

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