Exim Bank, ECGC, MIGA Partnership

New Partnership Provides Package of Financing and Insurance Solutions for Indian Companies Investing Overseas Export-Import Bank of India (Exim Bank), Export Credit Guarantee Corporation of India Ltd. (ECGC) and the World Bank's Multilateral Investment Guarantee Agency (MIGA) have formed a partnership that will provide a package of services that combines competitively-priced financing with risk mitigation to Indian companies investing overseas. The objective is to support the outward expansion Indian companies, as they increasingly seek opportunities to invest overseas. Outbound foreign direct investment by Indian companies is about $1 billion a year and growing. "By providing financing and risk mitigation tools, the partnership between MIGA, Exim Bank and ECGC would cater to the needs of the Indian enterprise and encourage them in venturing abroad with higher level of confidence", said Mr. T.C. Venkat Subramanian, Chairman & Managing Director of Exim Bank, during the launch of the partnership in Mumbai. Under the new arrangement, Exim Bank will provide the needed financing, while ECGC and MIGA will provide insurance against the risks that are out of investors' control such as currency inconvertibility and transfer restrictions; expropriation; war, terrorism and civil disturbance; and breach of contract. MIGA and ECGC will work together largely through reinsurance/co-insurance arrangements. Investors can opt for either financing or insurance or the combined package of services. Additionally, investors can interact locally with ECGC while still benefiting from the World Bank's involvement. MIGA's presence brings the World Bank umbrella of deterrence against host government actions that might affect project viability, says Luis Dodero, Vice President and General Counsel of MIGA. "MIGA's involvement can help protect investments, and in the event that disagreements do occur between investors and host governments, MIGA can mediate disputes and prevent claims from arising and disrupting projects." MIGA also brings unparalleled knowledge of country conditions and opportunities in developing countries, as well as international best practice in terms of environmental and social standards. Investors will able to take advantage of all the benefits of partnership with the World Bank without having to interact directly with MIGA staff in Washington DC. Says Mr. P.K. Dash, Chairman-cum-Managing Director of ECGC, "The new arrangement will have a very strong impact on efficiency and turnaround time. Investors can, for example, work with a primary contact at ECGC who coordinates the process and eliminates duplication. Documentation for the non-commercial risk insurance aspect of the partnership has been standardized by MIGA and ECGC." For more information go to: Multilateral Investment Guarantee Agency (MIGA), www.miga.org Export-Import Bank of India (Exim Bank), www.eximbankindia.com Export Credit Guarantee Corporation of India (ECGC), www.ecgcindia.com Contacts: At MIGA, Audrey Liounis, aliounis@worldbank.org At Exim Bank, S. R. Rao, Chief General Manager, eximcord@vsnl.com At ECGC, Geetha Muralidhar, General Manager, geetha.muralidhar@ecgc.com

Exim Bank (India)

From Wikipedia, the free encyclopedia

Exim Bank

Type

Public

Industry

Banking Financial services Export Credit Agency

Founded

1982

Headquarters

Mumbai, India[1]

Key people

T.C.A Ranganathan,Chairman and Managing Director

Products

Corporate Finance Lines of Credit Export Credits Film financing Export Services SME & Agro Finance Buyer's Credit NEIA

Website

Official Website

Export-Import Bank of India is the premier export finance institution of the country, established in 1982 under the Export-Import Bank of India Act 1981.

Contents
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1 Description 2 Organization 3 References 4 External links

Description[edit]
Government of India launched the institution with a mandate, not just to enhance exports from India, but to integrate the countrys foreign trade and investment with the overalleconomic growth. Since its inception, Exim Bank of India has been both a catalyst and a key player in the promotion of cross border trade and investment. Commencing operations as a purveyor of export credit, like other Export Credit Agencies in the world, Exim Bank of India has, over the period, evolved into an institution that plays a major role in partnering Indian industries, particularly the Small and Medium Enterprises, in their globalisationefforts, through a wide range of products and services offered at all stages of the business cycle, starting from import of technology and export product development to export production, export marketing, pre-shipment and post-shipment and overseas investment.[2]

Organization[edit]
Exim Bank is managed by a Board of Directors, which has representatives from the Government, Reserve Bank of India, Export Credit Guarantee Corporation of India, a financial institution, public sector banks, and the business community. The Bank's functions are segmented into several operating groups including:

Corporate Banking Group which handles a variety of financing programmes for Export Oriented Units (EOUs), Importers, and overseas investment by Indian companies.

Project Finance / Trade Finance Group handles the entire range of export credit services such as supplier's credit, pre-shipment Agri Business Group, to spearhead the initiative to promote and support Agri-exports. The Group handles projects and export transactions in the agricultural sector for financing.

Small and Medium Enterprise: The group handles credit proposals from SMEs under various lending programmes of the Bank.

Export Services Group offers variety of advisory and value-added information services aimed at investment promotion.

Export Marketing Services Bank offers assistance to Indian companies, to enable them establish their products in overseas markets. The idea behind this service is to promote Indian export. Export Marketing Services covers wide range of export oriented companies and organizations. EMS group also covers Project exports and Export of Services.

Besides these, the Support Services groups, which include: Research & Planning, Treasury and Accounts, Loan Administration, Internal Audit, Management Information Services, Information Technology, Legal, Human Resources Management and Corporate Communications.

References[edit]
1. 2. Jump up^ "About Us : Contact Us". Eximbankindia.com. Retrieved 2010-08-02. Jump up^ "Important PSU and other bodies dealing with Trade and Commerce". Indembassysuriname.com. 2010-07-29. Retrieved 2010-08-02. 2.

Union minister for Commerce and Industry Mr Anand Sharma (fourth from left) launched Buyer's Credit under Government of India's National Export Insurance Account (NEIA) in New Delhi on April 6, 2011 in the presence of senior officials of Exim Bank and ECGC. Seen in the picture are (from left) Exim Bank executive director Mr Prabhakar Dalal, Exim Bank chairman and managing director Mr T.C.A. Ranganathan, Indian foreign secretary Ms Nirupama Rao, ECGC chairman and managing director Mr Arvind Mehta and ECGC executive director Ms Geetha Muralidhar.

3.
India's Commerce & Industry Minister Shri Anand Sharma launched a new product called 'Buyer's Credit under the NEIA' at a seminar held on April 6, 2011, in New Delhi, to promote project exports from India. Export-Import Bank of India (Exim Bank) in conjunction with the Export Credit Guarantee Corporation of India Ltd (ECGC) has developed the new product --- Buyer's Credit under Government of India's National Export Insurance Account (NEIA) --- to give an impetus to project exports from India. Sovereign governments and government-owned entities overseas can use the Buyer's Credit facility for financing import of projects from India on deferred payment terms. While launching Buyer's Credit under NEIA, Mr Sharma said, "Currently, not many project exporters are venturing out in overseas markets. In fact, the number of project exporters is dwindling. There is vast scope for diversification of markets for project exports from India and for enhancing project export business into the existing market. Developing countries are the major markets for India's project exports, and these countries demand medium to long-term credits. With the introduction of this new product, I am sure, many project exporters would be in a position to venture into new markets, and help diversify India's Project exports." Indian Foreign Secretary Ms Nirupama Rao congratulated both Exim Bank and ECGC for developing the product which, she said, would surely help companies from India engaged in project exports. Speaking at the seminar, Exim Bank chairman and managing director, Mr T.C.A. Ranganathan said, "The

product with its attractive feature of extending credit directly to overseas buyers of projects from India without recourse to Indian exporters, will lead to a substantial rise in exports from India. Credit period would normally be 5 to 8 years, however, longer credit period could be considered in deserving cases." Explaining the features of the product, ECGC chairman and managing director Mr Arvind Mehta said, "While Exim Bank will extend the credit facility, it will obtain credit insurance cover under NEIA through ECGC and the insurance premium will be borne by the project exporter." About Exim Bank: Exim Bank, a statutory apex financial institution was set up in 1982 under an Act of Parliament to finance, facilitate and promote India's international trade. It is the principal financial institution in the country for coordinating the working of institutions engaged in financing exports and imports. In addition to its Head Office in Mumbai, Exim Bank has ten other domestic representative offices and seven overseas offices. Exim Bank provides competitive finance at various stages of the export business cycle covering import of technology, export product development, export production, export marketing and export credit at pre-shipment and post-shipment stages and investments overseas. In addition to finance, Exim Bank provides a range of analytical information and export related services necessary for globalisation of Indian companies. About ECGC: Export Credit Guarantee Corporation of India Limited, was established in the year 1957 by the Government of India to strengthen the export promotion drive by covering the risk of exporting on credit. Being essentially an export promotion organization, it functions under the administrative control of the Ministry of Commerce & Industry, Department of Commerce, Government of India. It is managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking, insurance and exporting community. ECGC is the fifth largest credit insurer of the world in terms of coverage of national exports. The present paid-up capital of the company is Rs 800 crores and authorized capital Rs 1000 crores. About NEIA: National Export Insurance Account is a Trust set up by Ministry of Commerce and Industry, Government of India, for providing export credit insurance cover for promoting project exports from India, administered by ECGC. NEIA has a corpus of Rs 2000 crores. The objective of the Fund is to promote project exports from India, which will not take place but for the support of a credit insurance cover in the following cases - viz., high risk on a single country; high value of single transaction; large valued projects involving unusual or unconventional credit terms, which are beyond the normal risk bearing capacity of ECGC.