ECGC conducts a comprehensive review of the countries covered by them, based on an internal country risk methodology that has been put in place. This methodology aims at evaluating the country not only on the prevalent economic and political settings, but also on the correct developments that would have an impact on the future, with an increase in horizon of 12 months, as well as forecast based on the strength and weakness of the country in terms of its economic and political strength.
Countries in Open Cover
Cover with No Restrictions
Cover is offered usually on normal terms and conditions i.e. 90% cover, 4 months waiting period for ascertainment of loss and settlement of claims, etc.
Countries in Restricted Cover
Usually those countries where the political and/or economic conditions are relatively deteriorating or have deteriorated and likelihood of payment delays or non-payment are imminent or have occurred
Permits selection of risks ECGC wishes to underwrite
Divided into 2 Categories
Category 1: Countries for which revolving limits are approved normally valid for one year
Category 2: Countries where Specific Approval will be given on case to case basis on merits
The ECGC Risk categorisation with its equivalent symbols is given in below table.
Moderately Low Risk
Moderately High Risk
Very High Risk
For further information may get in touch with ECGC: www.ecgc.in
Exim Bank has taken this initiative to add to the ongoing efforts towards reducing the asymmetry in information availability of trade finance and credit insurance facilities amongst MSME entrepreneurs. Though there are a few platforms which provide data and information to exporters/importers, this portal supplements export-import related data.