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  • 8/12/2019 Presentation of ECGC, Kolkata (1)

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    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    You focus on exports. We cover the

    You focus on exports. We cover the risks.You focus on exports. We cover the

    You focus on exports. We cover the risks.

    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    WELCOME

    TO A PRESENTATION ON

    INSURANCE & RISK MANAGEMENT

    and

    ROLE OF ECGC

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    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    You focus on exports. We cover the

    You focus on exports. We cover the risks.You focus on exports. We cover the

    You focus on exports. We cover the risks.

    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    ECGC Mission

    To supportthe Indian export

    industryby providing cost effectiveinsuranceand trade related

    services to meet the needs of the

    Indian exporters

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    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    You focus on exports. We cover the

    You focus on exports. We cover the risks.You focus on exports. We cover the

    You focus on exports. We cover the risks.

    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    OBJECTIVE of ECGC

    To PROMOTE EXPORTSMainly by

    Protecting Exportersagainst

    COMMERCIAL & POLITICAL RISKS In

    realising export proceeds

    Protecting Banks against

    RISK OF DEFAULT in export credit

    Protecting Investors against POLITICALRISKS in Shareholders equity and loan Inoverseas investments

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    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    You focus on exports. We cover the

    You focus on exports. We cover the risks.You focus on exports. We cover the

    You focus on exports. We cover the risks.

    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    ECGC Fact sheet

    Established in 1957

    Fully owned by GOI

    Under administrative control of MOCI

    Capital Base

    Highest ICRA rating of IAAA

    5 Regional Offices and 51 Branch Offices

    All Branches ISO 9001:2000 certified

    Member of Berne Union

    MOU with GOI

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    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    You focus on exports. We cover the

    You focus on exports. We cover the risks.You focus on exports. We cover the

    You focus on exports. We cover the risks.

    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    Key Performance Highlights

    Sr.

    No.Description

    Financial Years

    ( Audited Data)

    2010-11 2011-12

    1Gross Premium

    incomeRs.885.47 cr. 1004.80 cr.

    2 Claims Paid Rs.620.53 cr. 712.96 cr.

    3RecoveriesReceived

    Rs.136.07 cr. 168.69 cr.

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    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    You focus on exports. We cover the

    You focus on exports. We cover the risks.You focus on exports. We cover the

    You focus on exports. We cover the risks.

    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    What is Risk?

    Uncertainty abou t futu reoutcome due to :

    Unexpected occurrence of events

    Uncontrollable factors

    Lack of Information

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    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.

    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    Risk Perceptions

    Industry risk

    Business risk

    Risk of contract frustration

    Risk of physical damage

    Credit risk

    Country Risk

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    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.

    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    What is Credit Risk

    Definition: The potentialthat a debtorwill failto

    meet its payment obligationsin accordance with

    agreed terms.

    Export credit risk:

    a) Buyer related problems

    b) Country related

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    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.

    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    Risk Management

    Analysis, acceptance or mitigation

    Risk avoidance

    Risk Transfer

    Risk Sharing

    Risk retention

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    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.

    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    PAYMENT RISK

    RISK MANAGEMENT IN EXPORTS

    Goods Receivables

    Exchange

    Risk

    Loss or

    Damage

    Marine

    Insurance

    Hedging by

    Authorized

    Dealers

    CREDIT

    INSURANCE

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    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.

    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    LC

    Payment Risks

    POLITICAL RISK

    COUNTRYBUYER BANK

    LC / NON LC

    COMMERCIAL RISK

    Payment Risks

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    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.

    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    Role of ECGC as an Export Credit

    Insurer

    Providing export credit insurance coversto

    Exporters

    against loss in export of goods & services under

    ST & MLT (POLICY Scheme)

    Providing export creditinsurance coversto

    Banks & FIsto enable exporters obtain better facilities from

    them (ECIB) (formerly known as Guarantees)

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    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.

    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    War, Civilwar, Internaldisturbances

    exchangetransfer

    blockages/delay

    New import

    restrictions,cancellation of

    import licence,

    etc.

    Risks covered -Political

    Diversion ofvoyage dueto war

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    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.

    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    Insolvency ofbuyer/bank

    Nonacceptanceof exportedshipment

    Default ofbuyer/bank

    Risks covered- Commercial

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    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.

    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    Risks NOT considered Credit risk

    Non fulfillment of contractual obligations by exporter

    including quality dispute.

    Default or insolvency or any omission /commission of any

    agent of exporter/ buyer

    Failure of buyer to obtain necessary approvals for

    imports

    Causes inherent in nature of goods Exchange fluctuation risks

    Physical loss/damage to goods

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    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.

    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    Principles of Credit Insurance

    Good Faith

    Co-insurance

    Spread of risks

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    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    You focus on exports. We cover theYou focus on exports. We cover the risks.You focus on exports. We cover theYou focus on exports. We cover the risks.

    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    Buyer & Country Underwriting

    The 2 pillars of Export Credit Insurance :

    and

    BuyerUnderwritingthat assessesbuyer risks

    Limit fixed on Buyer

    CountryUnderwritingthat assessescountry risks

    Country classification

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    EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED

    You focus on exports. We cover theYou focus on expo