ECGC has introduced a new scheme to provide enhanced export credit risk insurance cover to the extent of 90% to support small exporters under the Export Credit Insurance for Banks Whole Turnover Packaging Credit and Post Shipment (ECIB- WTPC & PS). This will enable small exporters to explore new markets/buyers and competitively diversify their existing product portfolio.
ECGC Chairman M Senthilnathan said on Tuesday, “We expect the cover to play a game changing role. We expect this to bring up the percentage of accounts with up to Rs 20 crore, thereby lending further stability to ECGC portfolio. We expect more small companies to get export credit from banks, benefiting these industries greatly. We expect banks to provide more concessions. The net effect will be a benefit to exporters, involving a reduction in interest rate”.
The enhanced cover percentage shall be made available to the State Bank of India as per the previous year’s premium rate in view of its favourable claim premium ratio. However, for other banks there may be a moderate increase in the prevailing premium rates.
