Context:
ECGC Ltd., the government enterprise that provides export credit insurance, will soon approach the Reserve Bank of India for approval to deal in foreign currency for the benefit of exporters.
Relevance:
GS III- Indian Economy
Dimensions of the Article:
- What is ECGC?
- Functions of ECGC
- Facilities by ECGC
What is ECGC?
- ECGC stands for Export Credit Guarantee Corporation of India Ltd, and it is a government-owned export credit provider situated in Mumbai and owned by the Ministry of Commerce and Industry.
- It assists Indian exporters with export credit insurance.
- The Chairman and Managing Director, who is a central government civil servant in the ITS cadre, is the company’s highest-ranking official.
- In July 1957, the Government of India established the Export Risks Insurance Corporation (ERIC).
- In 1964, it was renamed Export Credit and Guarantee Corporation Limited (ECGC), and in 1983, it was renamed Export Credit Guarantee Corporation of India.
Functions of ECGC
- The ECGC offers exporters a variety of credit risk insurance products to protect them against losses in the export of goods and services.
- It provides bank and financial institution guarantees, allowing exporters to receive better terms from them.
- It offers Overseas Investment Insurance to Indian enterprises who invest in foreign joint ventures in the form of stock, loan, or loans.
Facilities by ECGC
- It offers insurance protection to exporters against payment risks.
- It provides guidance in export-related activities.
- It makes available information on different countries with its own credit ratings.
- It makes it easy to obtain export finance from banks/financial institutions.
- It assists exporters in recovering bad debt.
- It provides information on the creditworthiness of overseas buyers.
-Source: The Hindu
