Question
The Export Credit Guarantee Corporation (ECGC) plans to
support exports worth_______ in FY24 from around ₹6.7 lakh crore at present and the change will come into effect from July 1, 2023.Solution
The Export Credit Guarantee Corporation (ECGC) plans to support exports worth ₹10 lakh crore in FY24 from around ₹6.7 lakh crore at present. It has also increased the insurance cover for exporters with a credit limit of up to ₹50 crore to 90% and extended its cover to nine more banks. The change comes into effect on July 1, 2023. The benefit of the enhanced cover will be extended to the accounts with limits up to ₹50 crore for these four banks without extra cost. For nine banks where six-year claim to premium ratio is less than 70%, cover for accounts with export credit working capital limits up to Rs 20 crore, will be offered enhanced cover of 90% without any additional cost provided the banks are extending the export credit at an interest rate corresponding to the accounts rated ‘AA’ (or with equivalent rating).
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