Mumbai, 6 April 2022

 

The Export Credit Guarantee Corporation of India (ECGC) has modified its underwriting policy for export transactions to Sri Lanka.

After carrying out a review of the rating of Sri Lanka in view of prevailing situations, ECGC, which offers credit guarantee has changed the cover category from Open Cover to Restricted Cover category – RCC 1.  This category of export credit guarantee offers revolving limits and is normally valid for a year after being approved on a case-to-case basis.

However, the premium rates for the shipments insured under the insurance covers will remain unchanged.

The Corporation said that this change has been made to ensure that ECGC is able to assess and monitor risks covered under its export credit insurance policies and to place appropriate risk mitigation measures. This measure will assist ECGC customers in improving payment realization prospects from buyers in Sri Lanka. The change is effective from 7th April 2022, tomorrow.

ECGC has also asked to contact their servicing branch of ECGC for cover on shipments to Sri Lanka. "ECGC continues to monitor the situation and further review of the underwriting policy will be undertaken based on future developments," it said.

 

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PIB Mumbai | MD/JPS/DL/DR

Annexure

ECGC Press Note

ECGC - Country Risk Review of Sri Lanka

In view of the prevailing situation in Sri Lanka, ECGC has carried out a review of the country’s risk rating.

• While the present country rating of Sri Lanka remains unchanged as C1, its cover category has been changed from Open Cover to Restricted Cover Category – I (RCC-I), for which revolving limits are approved specifically on a case-to-case basis, normally valid for a year.
• However, it may be noted that the premium rates for the shipments insured under the insurance covers will remain unchanged.
• This review has been carried out to assess and monitor the risks covered under ECGC’s export credit insurance policies which will enable it to place appropriate risk mitigation measures in place and assist its customers in improving payment realization prospects from buyers in Sri Lanka.
• ECGC will continue to monitor the developments in Sri Lanka and further review the cover, if necessary.
• The customers are advised to contact their servicing branch of ECGC for any assistance.

 

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