Page 88 - International Marketing

NPP

90 International Marketing BRILLIANT'S

5. Export Credit Guarantee Corporation (ECGC): For minimizing
the risk element in export business and to facilitate the flow of finance
from banks to exports, there is an Export Credit Guarantee Corporation.
In addition to normal risks policies, the corporation assists the exporters
through special schemes such as packing credit guarantee, post-shipment
credit guarantee and export production finance guarantee. It is wholly owned
by the Govt. of India and works on "no profit no loss" basis. To suit varying
needs of the exporters, the corporation provides different types of cover
which may be divided into the following three broad groups:
1. Standard policies issued to exporters to protect them against
the risk of trading with overseas buyers on credit terms;
2. Financial guarantees issued to banks against the risks involved
in providing credit to exporters; and
3. Special policies.
Under its policies intended to protect the exporters against overseas
credit risks, ECGC bears the main brunt of the risk and pays the exporter
90% of his loss on account of commercial risks and political risks. The
ECGC provides a number of special schemes to suit the particular needs
of the exporting community. These special schemes include insurance
cover for buyer's credit and lines of credit, transfer guarantee, overseas
investment insurance guarantee short terms exports, guarantees project
and term exports and exchange fluctuation risks.
6. Export Import Bank (EXIM Bank): EXIM Bank was established
on January 1, 1982 for the purpose of financing, facilitating and promoting
foreign trade in India. It extends finance to exporters of capital and
manufactured goods, exporters of softwares and consultancy services
and to overseas joint ventures and turnkey/construction projects abroad.
The Bank is the principal institution in India for co-ordinating the work of
institutions engaged in financing export and import trade. EXIM Banks
advisory services provide access to Euro financing and global credit sources
for Indian companies engaged in exports. The Bank works closely with
Indian companies in designing financing packages for export oriented
industries in India, overseas joint ventures and projects.
On March 31, 1990 the Bank had a paid up capital of ` 233.80 crores.
The Bank raises loan resources from domestic and international markets.
7. Export Inspection Council (EIC): The EIC a statutory body, is
responsible for the enforcement of quality control and compulsory
preshipment inspection of various exportable commodities.
This Council organizes through inspection all over the country,
preshipment inspection of the products and commodities notified for