Export Credit Guarantee Corporation has signed the Corporate Agency Agreements with the following banks for

marketing the insurance products of ECGC meant for the exporters: 1. Allahabad Bank. 2. Andhra Bank. 3. Bank of Baroda. 4. Bank of India. 5. Bank of Rajasthan Ltd. 6. Canara Bank. 7. Catholic Syrian Bank. 8. City Union Bank Ltd. 9. Corporation Bank. 10. Dena Bank. 11. Federal Bank. 12. Indian Bank. 13. Indian Overseas Bank. 14. Karnataka Bank. 15. Karur Vysya Bank Ltd. 16. Lakshmi Vilas Bank Ltd. 17. Punjab National Bank. 18. Saraswat Co-op. Bank. 19. South Indian Bank Ltd. 20. UCO Bank. 21. Union Bank of India. 22. United Bank of India. 23. Tamil Nadu Mercantile Bank. 24. Central Bank of India. 25. Syndicate Bank. 26. Bank of Maharashtra Bancassurance is a concept by which the insurance company markets its insurance products through the banks. As the bank has a better network of branches in different places, it is possible for them to market the products of various insurance products at one window. It is also easier for the customers to have one contact point. It is expected that this arrangement besides being mutually beneficial, will benefit the exporting community.

<="" b="">Financial institutions in India extend Buyer's Credit/Line of Credit to overseas buyers/institutions to facilitate export of goods and services from India. Institutions like Exim Bank, SIDBI etc., often seek ECGC for Buyer's Credit/LoC cover. Buyer's Credit/LoC cover can be obtained either for covering political risks or for comprehensive risks. Factors weighing approval of Buyer's Credit proposals are: Competence and capacity of exporter in executing the contract; commercial justification of the contract; economic viability of the overseas project for which credit is required to be offered; credit worthiness, standing and financial position of foreign buyers, and general economic conditions of the buyer's country.

Lines of Credit are generally extended by Exim Bank of India to financial institutions and governments in overseas countries facilitating export of consumer goods and capital goods.

<="" b="">New initiatives ECGC has since revised its premium structure providing substantial reduction in the rates both for short term as well as for medium and long-term contracts. This will go a long way in providing cost-effective credit insurance support to project exporters, which in turn will enable them to compete effectively for international tenders. Installment facility in payment of premium that too without charging interest is another welcome step being initiated. In order to increase project exports and to encourage project exporters, the Government of India has initiated various steps. Institutions like ECGC and Exim Bank are being strengthened to provide adequate support to project exporters. A national export insurance account is being mooted to facilitate credit insurance support on government account. The government is also considering increasing the capital base of ECGC so as to enhance its underwriting capacity.

n addition to the policy covers, which are issued to exporters, ECGC also extends its guarantee support to banks in India against both funded and non-funded facilities extended to project exporters. The types of guarantees issued by Indian banks are: 1] Funded: * Packing Credit * Post Shipment * Overdraft * Rupee Loan Non-Funded * Bid Bond * Advance payment * Performance guarantee * Retention Money guarantee * Overseas Lending Finance guarantee ECGC's counter-guarantee can be obtained by banks in India to protect them against any loss that they may sustain owing to invocation of the above guarantees. * Risk covered: Insolvency of the exporter/protracted default of the exporter * Percentage of loss: 75 per cent to 90 per cent covered

* Rate of premium: 0.80 paise per Rs 100 p.a. & 0.95 paise per Rs 100 p.a. As per RBI's recent directive, no pre-bid approval from authorised dealer, Exim Bank or Working Group is required to be taken by project exporters. Only post-award approval is required to be taken. However, it would be in the interest of project exporters to obtain 'in-principle' clearance from their bankers and ECGC assuring them of support in the event of their securing the contracts. ECGC's approval of project exports and services contracts is based on the following aspects: (i) The capacity of the project exporter to carry out large value contracts - technical, professional and managerial, and their past experience in the line of business. (ii) Country to which the exports are to be made - stability of political set-up/government, soundness of economy, payment records, relations with IMF, World Bank and other international FIs and donor countries. (iii) Overseas contract/project - value, type of project, whether cleared by local authorities, profitability. (iv) Buyer/employer - private/government. (v) Payment terms and security, rate of interest for deferred receivables. (vi) ECGC's underwriting policy on the country and its experience, whether any transfer delay experienced. (vii) Berne union experience - whether the credit period offered is in line with Berne union understanding. (viii) Reinsurance back-up available or not. (ix) Whether need for covering the contract under National Export Insurance Account setup by Government of India.