The Export Credit Guarantee Corporation (ECGC) was created to boost exports from India by providing insurance against commercial and political risks to exporters and banks. It aims to shift the focus of exporters from risks and payment issues to business expansion. ECGC provides coverage for exporters entering international trade for the first time. It also shares credit ratings and risk information on importers and countries. This helps exporters explore new markets and strengthens their bargaining power when recovering debts. ECGC's policies and guarantees facilitate export financing and help stabilize cash flows for exporters.

1. Overview of
Export Credit Guarantee
Corporation (ECGC)
BUSINESS ASPECTS IN BANKING AND INSURANCE

2. Group Members
 Shashank Agarwal (2)
 Harsh Aladia (4)
 Roven Dsouza (27)
 Jash Gada (29)
 Saloni Jain (37)
 Mili Madani (51)

3. Concept behind creating ECGC
 Boost export promotion by covering the risk of exporting on credit.
 Acts as a protection against loss
 Shift focus on business related activities rather than payment issues.

4. Role of ECGC
To promote exports mainly by
• Protecting Exporters against commercial and political risks in realizing export proceeds
• Protecting Banks against Risks of Default in export credit
• Protecting Investors against Political risks in Shareholders’ equity and loan in overseas investments

5. Specific Functions of ECGc
1. Insurance coverage for those exporters who are entering in international trade for the first time
after economic liberalizations.
2. First- hand information in export-realted activities, particularly in areas of potentail risk associated
with countries and mode of payment in globally changing trade regime and offer such guidance to
exporters.
3. Through its network with other credit risk agencies in the world, it publishes information on risk
perception on different countries with its own credit ratings
4. Facilitator in obtaining export finance from banks and financial institutions through various
guarantees
5. Helps in recovery of bad debts from defaulters by helping them precede legal and diplomatic
channels.
6. Database of exporters and and importers and shares creditworthiness.
7. Customized products to exporters.

6. How is it helpful for the exporters?
Helps in expansion of sales
Protects exporter against bad debts.
Credit facilitation and boost borrowing power
Stabilize and assure cash flow.
Explore and develop new markets.
Protection againts corporate insolvency, bankruptcy.
Helps in dealing with concerned country’s courts and administration of recovery order.

7. Attributes towards success
5 Regional Offices and 51 Branch Offices
 All Branches ISO 9001:2000 certified
 Member of Berne Union(53 members from 42 countries)
 MOU with GOI
Authorized capital of Rs. 1000 crores and paid-up Rs. 900 crores.
Alliance with Coface (France), D&B
Registred with IRDA
Accredited with “iAAA” by ICRA
GOI instilled confidence by estblishing NEIA(National Export Insurance Account) with corpus of Rs. 2000 crores.
Tie-up with NSIC (National Small Industries Corporation)
Fulll-fledged Factoring services.

8. Bancassurance

9. Two pillars of Credit Insurance
Buyer
Underwriting
that assesses
buyer risks
Limit fixed on Buyer
Country
Underwriting
that assesses
country risks
Country classification

10. Risks covered
 Buyer risks
 Bank risks
 Commercial risks
 Political risks

11. Buyer Risks Bank Risks
 Insolvency
 Protracted Default
 Contract Repudiation
 Insolvency of the bank
 Protected Default

12. War, Civil
war, Internal
disturbances
Exchange
transfer
blockages
/delay
New import
restrictions,
cancellation of
import license, etc.
Political Risks
Diversion of
voyage due
to war

13. Insolvency of
buyer/bank
Non
acceptance
of exported
shipment
Default of
buyer/bank
Commercial Risks

14. 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 credit
to exporters
Special
Schemes
(Transfer Guarantee )
To protect Banks
Issuing L/C,
Confirming L/C,
Insurance Cover,
Line of Credit,
Overseas Investment
Insurance & Exchange
Fluctuation Risk
Insurance

15. Products offered to Exporters
 Declaration Based Policy
 Exposure Based Policy
 Consignment Based Policy
 Covers for IT Industry

16. Main Policies
 Shipment Policy
 Small Exporters Policy
 Specific Shipment Policy
 SME Policy

17. Benefits to Exporters
 Protection for account receivable
 Reduction in Bad debt
 Improvement in quality of financial planning
 Enhancement in risk taking capacity
 Easy access to bank finance on liberal terms

18. Benefits to Banks
 Contract of insurance between bank & ECGC
 Protects banks against losses in export credit due to
- Insolvency of exporter
- Protracted default of exporter
 Protection For Pecuniary Liabilities
 Enables To Waive Collateral Securities
 Lesser Capital Deployment requirement.

19. Bibliography
 https://www.ecgc.in/portal/
 http://en.wikipedia.org/wiki/Export_Credit_Guarantee_Corporation_of_India

20. Thank you.