Mr M Senthilnathan, Chairman and MD – ECGC, Mr Sunil Joshi, Executive Director – ECGC and Mr Sanjay Budhia, Chairman – CII National Committee on EXIM and MD – Patton at the digital session on Partnering Export Growth
CII organized a webinar / digital session with ECGC on partnering export growth on June 15, 2020. Shri M.Senthilnathan, Chairman-cum-Managing Director and Shri Sunil Joshi, Executive Director participated and addressed the participants. The session deliberated upon the need for cost-effective insurance to drive exports and bring back growth in the economy.
“In these trying times, managing credit risk and taking protection against unforeseen losses has assumed further importance and there is a need to increase the flow of bank credit to export sector and timely settlement of claims, said Mr. Sanjay Budhia, Chairman, CII National Committee on EXIM.”
Mr.Senthilnathan mentioned that ECGC is working under pandemic-related restrictions but they are trying their best to provide services to their clients. Right now all the buyers and most part of the world are affected due to COVID containment measures, he said. The crisis is much worse compared to the one witnessed after Global Financial Meltdown a decade earlier. The working capital cycle of almost all the business units have been impacted. ECGC will be playing a counter cyclical role. ECGC recognizes that the situation calls for some credit accommodation and credit insurers need to take high risks, he added.
He also spoke about various measures that ECGC has announced for exporters with regard to relaxation in procedural aspects of ECGC cover. In reply to a query, CMD said that in case of large buyers, if any adverse information comes to the notice of ECGC it will be shared with its policyholders.
CMD also stated that ECGC is ready to support exporters in their endeavor to expand to new markets especially to Africa and Latin America. In reply to a query from member it was clarified that report of default in respect of a delinquent buyer need to be reported within a month after 30 days from the due date. He also clarified that in declaration based policies omission to declare shipments will adversely impact claim payment. He requested members to choose exposure based policies where shipments are regular and frequent. Declaration based policies are beneficial in case of less frequent but with highly varying shipment values.
Shri Sunil Joshi, Executive Director – ECGC, also addressed the seminar and gave a global perspective on the challenges before the world economy, in general, and India, in particular. He mentioned that the global economy is prone to multiple shocks of heavy debt burden, falling trade, reduced consumption, spending, and overall declining GDP. According to him the four major challenges are availability of finance, flexible commercial terms, geopolitical risks, and increased insolvencies. He further said that ECGC’s role is to provide capacity by supporting longer tenors, high risks markets and high value transactions. Shri Sunil Joshi also clarified issues relating to project exports cover on a query from one of the members.
Prominent Companies like Tata Steel, Seimens, Escorts, Bajaj Electricals, J K Tyre, Bharat Forge, Patton International, Avaada Energy, Coromandel International, joined from across the country.