Context: Centre is looking to expand the Export Credit Guarantee Corporation (ECGC) cover to exporters of gems and jewellery.
About Export Credit Guarantee Corporation (ECGC)
- It is wholly owned by the Government of India and was set up in 1957 with the objective of promoting exports from the country.
- The insurance covers provided by ECGC enables the banks to extend timely and adequate export credit facilities to the exporters.
- ECGC provides:
- A range of insurance cover to Indian exporters against the risk of non-realization of export proceeds due to commercial or political risks.
- Different types of credit insurance covers to banks and other financial institutions to enable them to extend credit facilities to exporters
- 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.
- It also administers the National Export Insurance Account (NEIA) Trust which caters to project exports of strategic and national importance.