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Cos rushing to ECGC for cover.


Date: 31-07-2009
Subject: Cos rushing to ECGC for cover
 Hyderabad, July 30 The number of IT exporters seeking cover from the Export Credit Guarantee Corporation of India Ltd (ECGC) is growing because of the recession abroad.

“Till last year, the IT segment accounted for only five per cent of our total Rs 755-crore premium. But during the last six months, many exporters are coming to us,” Mr A. V. Muralidharan, Chairman and Managing Director, ECGC, told newspersons on the sidelines of a seminar on ‘Managing Exports in a Challenging Economy’ organised by the Confederation of Indian Industry here on Thursday.

Those approaching the ECGC included some from the “top 10 IT companies in the country”, he added.

The ECGC, however, was following a cautious approach in giving policies to IT companies in view of the large churn of projects or sums being insured, he added.

ECGC had enhanced the percentage of cover by five per cent to 95 per cent under the Export Credit Insurance Policies, and for banks by 10 per cent, he said.

Dr N. Krishna Mohan, Regional Director (Andhra Pradesh), said focus on multiple currency baskets would help deal with forex fluctuations. 

Source : Business Line


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