Export Credit Credit Guarantee Corporation Corporation of India Limited
What is ECGC?
Company - wholly owned by the Government of India Functions - under the administrative control of the Ministry of Commerce. Oldest export credit insurance agency in the developing world 5th Largest Credit insurer of the world
Need
for ECGC
Support and strengthen the export promotion
drive Payments for exports are open to risks even at the best of times. Far-reaching political and economic changes that are sweeping the world. To face commercial risks of insolvency or protracted default of buyers.
Vital Stats
Largest Policy short term Rs.250 crores Largest database on buyers 3 lakhs Largest credit limit Rs.80 Crores Largest claim paid Rs.120 crores Quickest claim paid 2 days Highest compensation-Iraq Rs 788 Crores
Functions Of ECGC
Provides a range of credit risk insurance to exporters against loss of goods and services. Offers guarantee to banks and financial institutions to enable exporter obtain better facilities from them. Provides overseas investment insurance to Indian companies investing in joint ventures abroad in the form of equity or loans.
Functions Of ECGC
Offers insurance protection to exporters against payments risks. Provides guidance in export related activities. Makes available information on different countries with its credit ratings. Makes it easy to obtain export finance from banks/financial institutes. Assists exporters in recovering bad debts. Information on credit- worthiness of overseas buyers.
Services offered by ECGC
Products
Of ECGC
Credit Insurance Policies
Guarantees Policy
Packing Credit Guarantee
Turnover Policy
Exchange Fluctuations Risk Cover
Standard
to Bank
Exporters Policy
Export Finance (overseas lending)
Maturity Factoring
Post-Shipment Credit Guareantee
Small
EXIM Bank
SET UP BY AN ACT OF PARLIAMENT SEPTEMBER 1981
IN
WHOLLY OWNED BY GOVERNMENT OF INDIA COMMENCED OPERATIONS IN MARCH 1982 APEX FINANCIAL INSTITUTION
EXIM BANK
OBJECTIVES for providing financial assistance to
exporters and importers, and for functioning as the principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the countrys international trade shall act on business principles with
regard to public interest
due
Range
of Services
Products
and
EXPORT CREDITS
Pre-shipment credit
Supplier's Credit
For Project Exporters
For Exporters of Consultancy and
Technological Services
Guarantee Facilities
Finance for EOU
Term Finance (For Exporting Companies)
Working Capital Finance (For Exporting Companies) 1. Funded 2. Non Funded
EQUITY PARTICIPATION
Overseas Investment Finance
Finance for Indian Company's equity participation in the overseas Joint Venture (JV)/ Wholly Owned Subsidiary (WOS)
Direct Finance (Term & Working Capital) to the overseas JV / WOS
Finance (for equity/debt component) for acquisition of overseas businesses / companies including leveraged buy-outs including structured financing options
Direct Equity by Exim Bank in the overseas JV/ WOS of an Indian Company
Procedural
Flow Chart
1EXIM BANK SIGNS AGREEMENT WITH BORROWER AND
ANNOUNCES WHEN EFFECTIVE. 2EXPORTER CHECKS PROCEDURES AND SERVICE FEE WITH EXIM
BANK AND 3 NEGOTIATES CONTRACT WITHIMPORTER. 4 IMPORTER CONSULTS BORROWER AND 5 SIGNS CONTRACT
WITH EXPORTER. BORROWER APPROVE S CONTRACT.EXIM BANK APPROVES
CONTRACT AND ADVISES BORROWER AND ALSO EXPORTER AND COMMERCIAL BANK. EXPORTER SHIPS GOODS.COMMERCIAL BANK NEGOTIATES SHIPPING DOCUMENTS AND PAYS EXPORTER. EXIM BANKREIMBURSES COMMERCIAL BANK ON RECEIPT OF
CLAIM BY DEBIT TO BORROWER. BORROWER REPAYS EXIM BANK ON DUE DATE.
Procedural
Flow Chart
Export Services Exim Bank offers a diverse range of information, advisory and support services, which enable exporters to evaluate international risks, exploit export opportunities and improve competitiveness.
EXIM BANK-Partner in Globalisation FINAL PRODUCT
CAPITAL GOODS
CAPITAL
EXPORT PRODUCT
DEVELOPMENT TECHNOLOGY
CAPITAL
PRODUCTION
MARKETING
RAW MATERIAL
CAPITAL GOODS
IMPORT
PRE SHIPMENT
POST SHIPMENT
VALUE ADDITION
Key
Business Initiatives
LINKING RURAL INDUSTRIES TO GLOBAL MARKET CREATION OF EXPORT CAPABILITY IN GRASS ROOT ENTERPRISE CAPACITY BUILDING THROUGH TRAINING POVERTY REDUCTION THROUGH EXPORT LINKAGE
