EXPORT CREDIT GUARANTEE CORPORATION (ECGC)

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.