Export Credit Guarantee Corp. of India (ECGC) introduced a new scheme to provide enhanced export credit risk insurance, amid heightened uncertainties in global trade.
The scheme provides enhanced export credit risk insurance cover up to 90% to support small exporters under the Export Credit Insurance for Banks Whole Turnover Packaging Credit and Post Shipment (ECIB- WTPC & PS).
“By giving 90% cover to banks, 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,” ECGC chairman M. Senthilnathan said at a press conference.
This new scheme will enable the banks holding ECGC’s WT-ECIB cover to explore the possibility of reducing interest rates further so that all the stakeholders are benefitted, the ministry said, adding that the enhanced cover percentage shall be made available to SBI as per the previous year’s premium rate in view of its favourable claim premium ratio.