Export Credit Guarantee Corporation (ECGC)

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Key updates-

• With effect from 25.02.2022, the cover category of Russia has been modified from Open Cover to Restricted Cover Category – I (RCC-I) for which revolving limits (normally valid for a year) are approved specifically on a case-to-case basis.
• Open cover categories enable policyholders to obtain cover on a more liberalized basis. 
• The corporation also clarified that coverage on export to Russia had not been withdrawn.
• This measure would also enable exporters and banks in India in assessing the export payment realization prospects from buyers and/or banks in Russia.
• India’s exports to Russia stood at $2.65 billion in 2020-21 and Exports to Ukraine during the same period were $451 million.

About Export Credit Guarantee Corporation (ECGC)-

• ECGC Ltd. (Formerly known as Export Credit Guarantee Corporation of India Ltd.) is wholly owned by the Government of India.
• Based in Mumbai, it works under the Ministry of Commerce and Industry.
• It was set up in 1957 with the objective of promoting exports from the country by providing credit risk insurance and related services for exports. 
• ECGC is essentially an export promotion organization, seeking to improve the competitiveness of the Indian exports by providing them with credit insurance covers.
• The Corporation has introduced various export credit insurance schemes to meet the requirements of commercial banks extending export credit. 
• ECGC provides a range of insurance covers to Indian exporters against the risk of non – realization of export proceeds due to commercial or political risks.
• It also provides export Factoring facility for MSME sector which is a package of financial products consisting of-
  • Working capital financing.
  • Credit risk protection.
  • Maintenance of sales ledger and collection of export receivables from the buyer located in an overseas country.

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