New Delhi:
Export Credit Guarantee Corporation (ECGC) mentioned on Monday that it has modified the insurance coverage cowl class for Indian exports to Russia, underneath which revolving limits are authorized on a case-to-case foundation, amid the continued battle between that nationĀ and Ukraine.
The company mentioned in an announcement that “based on the near-term commercial outlook, it has been decided to modify the country-risk classification of Russia under the short-term and medium and long-term with effect from February 25”.
Revising its underwriting coverage on Russia, ECGC has now put that nation in Restricted Cover Category (RCC-I) from the sooner ‘Open Cover’ class.
Open cowl classes allow policyholders to acquire cowl on a extra liberalised foundation. In a press launch, the company clarified that protection on export to Russia has not been withdrawn.
“In view of the prevailing situation, ECGC carried out a review of the country risk rating of Russia as per its extant underwriting policy. Accordingly, with effect from February 25, 2022, the cover category of Russia has been modified from Open Cover to RCC-I for which revolving limits (normally valid for a year) are approved specifically on a case to case basis,” it mentioned.
It is additional clarified that this modification has been made to make sure that ECGC is ready to assess and monitor the dangers coated underneath its export credit score insurance coverage insurance policies and to put acceptable threat mitigation measures.
The measure, it mentioned, can even allow the exporters andĀ banks in India in assessing the export fee realisation prospects from consumers or banks in Russia.
India’s exports to Russia stood at $2.65 billion in 2020-21. The exports to Ukraine throughout the identical interval was $451 million.Ā