Rs1450 Crores Infusion in ECGC
20K
distinct exporters
Benefitted
in FY 2017-18
Government
of India has approved capital infusion of Rs. 2,000 Crore to be released during
FY 2017-18 to FY2019-20. So far, the capital is released during the FY 2017-18
was of Rs50Crores; FY 2018-19 released of Rs500Crores and now during the FY
2019-20, the proposal to release the rest amount of Rs1450Crores has been
submitted and same shall be decided by the Ministry of Finance as per the
availability of the fund.
The
capital infusion is necessary to strengthen ECGC underwriting capabilities to
support MSME exports and exports to challenging & emerging markets like
Africa, CIS and Latin American countries. During FY 2017-18, ECGC supported
exports & export loans of Rs. 6.41 lakh crore. Around 20,000 distinct
exporters are benefitted out of ECGC covers. Out of this, MSME share was more
than 85%.
The
enhanced capital will enable ECGC to diversify its portfolio like factoring
facilities to MSME exporters and a more liberal underwriting approach to
challenging & emerging markets like Africa, CIS and Latin American
countries. Enhanced capital will also enable continuation of cost effective
credit insurance to exporters.
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