EXPORT CREDIT GUARANTEE CORPORATION (ECGC)

  • March 2, 2022
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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EXPORT CREDIT GUARANTEE CORPORATION (ECGC)

TOPIC: Economy

Context- ECGC on Monday said it had modified the insurance cover category for Indian exports to Russia amid the ongoing conflict between Russia and Ukraine.

Concept-

  • Revising its underwriting policy on Russia, ECGC has now put that country in the Restricted Cover Category (RCC-I) from the earlier ‘Open Cover’ category.
  • The RCC-1 category of export credit guarantee offers revolving limits and is normally valid for a year after being approved on a case-to-case basis.
  • Under the open cover category, policyholders were able to obtain cover on a more liberalised basis.
  • India’s exports to Russia stood at $2.65 billion in FY21.
  • Exports to Ukraine during the same period were $451 million.

About ECGC:

  • The ECGC Ltd is wholly owned by the Ministry of Commerce and Industry.
  • The Government of India had initially set up the Export Risks Insurance Corporation in 1957.It was changed to Export Credit & Guarantee Corporation Ltd in 1964 and ECGC Ltd in 2014.
  • ECGC was established to promote exports by providing credit insurance services to exporters against non-payment risks by the overseas buyers due to commercial and political reasons.
  • Micro, Small and Medium Enterprises (MSMEs) form 97% of the client base of ECGC.
economy EXPORT CREDIT GUARANTEE CORPORATION (ECGC)