Our Vision - Aman Union€¦ · Overseas Investment Insurance Policy 1. Declaration Based Policies...
Transcript of Our Vision - Aman Union€¦ · Overseas Investment Insurance Policy 1. Declaration Based Policies...
Headquartered in Mumbai and spread across India, we endeavour to support Indian
Export Industry with our experience, expertise and undying commitment to progress
and advance…
Our Vision:
To excel in providing export credit insurance
and trade related services.
Our Mission:
To support the Indian Export Industry by
providing cost- effective insurance and trade-
related services to meet the growing needs of
Indian export market by optimal utilization of
available resources.
Celebrating Diamond Jubilee Year 2017
Supporting
Exports
Care
Efficiency
Guidance
Cost
Effectivenes
s
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Vision and Mission
iAAA rating by ICRA
Export Credit Agency setup under the Companies Act
1956
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About Us
100% owned by the Govt. of India, under the
administrative control of the Ministry of
Commerce and Industry
Governed by Board of Directors
Regulated by the Insurance Regulatory and
Development Authority of India (IRDAI)
Business Profile
ECGC
Short Term(ST)
Surety Cover
Medium and Long Term (M<)
Overseas Investment
Insurance Policy
1. Declaration Based
Policies2.Exposure Based
Policies3.Specific Shipments
Policy 4.Consignment
Exports Policies
Short Term, Medium & Long Term
PC / PS
Fund based Non fund Based
Special schemes 1. Lines of Credit
2. Buyer’s Credit
Exporters Banks/FIs
1. Specific Contracts Policies
2.Specific Shipments
Policies3. Specific Services
Policies4. Construction work
Policy
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Short-Term Covers for Exporters
Support to Exporters - Insurance
Protecting Indian exporters against commercial & political risks in
realizing export proceeds
Assisting Indian Exporters in managing their credit risks by
providing timely information on worthiness of the buyers, bankers
and the counties
Makes it easy to obtain export finance from banks/ financialinstitutions
Assists Indian exporters in recovering bad debts
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SCR/SEC/MEP
Factoring MBE / ETP / CSC
SSP / BWP /
SBE
Services / ITES
CGE / CSA
Factoring services
for MSMEs
Policies for
Consignment exports
Policies for service exports
ST Cover for
Exporters
WT Policies for Small and Medium
Exporters
Declaration/Exposure
/ Tailor-made policies
for large exporters
Specific Buyer Policy
Declaration / Exposure-
based Policies
ST Cover for Exporters - Products
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Nationalization, expropriation or
sovereign acts which in their
effects are equivalent to
expropriation
Restrictions imposed by the
government or other entities
directed or controlled by the
government
Payment embargoes or moratoriums
Occasioned by interruption or
diversion of voyage outside
India resulting in additional
expenses
War or other armed
conflicts, revolutions or civil
disturbance or terrorist acts
associated with such events
War Risk
Import
Restrictions
Risk
Expropriation
Risk
Diversion of
Voyage
Transfer
Delay Risk
Political
Risks
ST Policies for Exporters – Covered Risks
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Inability of the LC opening bank
to pay on the due date despite
compliance of LC conditions
Inability of the LC opening
bank to honour the
commitment under the
documentary credit due to its
insolvency
Failure of the buyer to take the delivery of
the consignment resulting in re-import, re-
sale or abandonment
Inability to pay due to
insolvency of the buyer
Inability of the buyer to pay
on the due date due to
commercial reasonsDefault
Insolvency
of LC
opening
Bank
Default by LC
Opening
Bank
Insolvency
Repudiation
Commercial
Risks
ST Policies for Exporters - Covered Risks
Buyer Underwriting Score Card
Business Ability
Financial
Strength
Transaction Behavior
Industry
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Assesses the nature, ownership
structure, legal obligations, payment
behavior of the company
This factor takes into account
the status of relevant industry in
the buyer’s country, product
obsolescence, country ranking
etc
Parameters like financial size
and its health, scale of
operation, debt, liquidity etc.
give true reflection of
financial strength
Various factors capture the real
time transactions of exporters and
buyers with ECGC. Exporters’
experience with the buyer gets
added at regular interval
Country Risk Rating
Economic Risk Evaluation More than 10 factors measure economic conditions
Political Risk EvaluationQuantitative and qualitative data measure political conditions
Economic & Political Trade Relations Measures trade relations with India from
the perspective of exports
ECGC ExperienceProvides the most appropriate historical outlook
Experience of other AgenciesExperience of other credit insurers (International co-operation)
ForecastMeasures outlook of the country
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Rating Explanation
A1 Insignificant risk
A2 Low risk
B1 Moderately low risk
B2 Moderate risk
C1 Moderately high risk
C2 High risk
D Very high risk
Short-Term Covers for
Banks
Support to Lenders
Insurance / Guarantee
• Banks and FIs extend fundbased facilities to theexporters to finance workingcapital needs, viz. pre andpost shipment finance.
• ECAs provide protection tothe Banks and FIs for the nonpayment of the disbursedloan
• It lowers risks for the lenders,since the ECA covers thenon-repayment risk for theloan
• Zero / reduced weighting forcapital adequacy
ECA
Bank Exporter
Guarantee
Trade Finance
Re-imbursement
Insurance
Export Credit Insurance for Banks
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Enhanced Risk Management for Banks
• Flow of adequate credit to exporters back up of
insurance
• Better customer selection through Specific
Approval List of ECGC
• Lower margins / collateral securities
• Lower weights for risk on export credits covered
by ECGC Capital Adequacy
Supports Banks in the event of non-payment
• Increased liquidity for banks through ECGC
claims
• Lower provisioning to the extent of ECGC
coverage
• Post-claim recovery initiatives
Covering export lending of banks
against insolvency and default of
exporters
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Whole Turnover
Cover
Export Finance
/Production
Cover
Individual
Cover
BIPC
Surety Cover
CSC
Finance against
duty drawback / full
production
Customer specific
cover Tailor-made
for Banks
Cover for Non-Fund-based
advances
ST Cover for
Banks
WT Pre-shipment cover
WT Post-shipment Cover
Individual Pre- /
Post- shipment cover
Bank-Branch-wise
cover
ST Cover for Banks - Products
Medium and Long-Term
Covers
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Specific
Policies
Buyer’s
Credit Cover
Construction Works Policy
OII
ECIB: Fund-
based Cover
ECIB: Non-fund
-based Cover
Covers to banks in
India for Buyer’s
Credit Cover
Cover for Non-Fund-
based advances by
banks
Cover for Fund-based advances
by banks
MLT Covers for
Exporters /
Banks
Individual policy covers for
shipments / contract / services
For overseas civil
construction
Overseas Investment
Insurance
MLT Cover for Exporters/Banks - Products
Developments (2016-17)
Multilateral Agreement with BRICS ECAs
Hosted and chaired BRICS Heads of ECAs
meeting and BRICS Technical workshop
Hosted and Chaired G12 Heads of ECAs
meeting
Active role in Berne Union Management and
organizing work shop seminars etc.
Co-operation agreements with International
Export Credit Agencies
New Product - Covers to overseas subsidiary
/ Joint Venture of the parent company in India
under specified MLT Policy
Enhanced support by the Government
through additional capital infusion30
Sixty years of empowering exports
www.ecgc.in
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