• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

A Correspondent

MADURAI, Feb. 8

THE Export Credit Guarantee Corporation (ECGC) of India plans to launch factoring business for exporters from April, said Mr G.M. Ganapathy, General Manager.

Explaining the benefits of factoring to exporters at its branch here, Mr Ganapathy said the business would protect both bankers and exporters. He said the ECGC would not be competing with the banks which advanced loans to exporters, as the role of the ECGC was to provide guarantees and not to lend money. This facility would enable the banks to be liberal to exporters, he felt.

Mr Ganapathy said though the ECGC was operating its schemes on a turnover basis, exporters who did not hold shipment policies could seek short-term transactions to cover specific shipments under some new schemes. He urged caution on the part of exporters, who he said should seek the advice of the corporation before selecting their buyers.

Stating that a sum of Rs 800 crore that was due from Iraq would be received once the sanctions on that country were lifted, he said export business on the whole was dull.

While Tamil Nadu's share of exports from the South had dropped, that of Karnataka and Andhra Pradesh had increased, he said.

He also said the ECGC was working to link all its branches before April.

As the software and hardware had been put in place, the proposed connectivity would help branch managers receive approvals for any limit from exporters who would benefit in terms of shipment, approval of policy and getting details about the buyers.

The Branch Manager, Ms G. Vasantha, said the corporation had transacted business of Rs 335 crore in the previous year. It had settled claims worth Rs 2,478 crore against a total income of Rs 2,773 crore till the last fiscal.

Send this article to Friends by E-Mail

Stories in this Section
Chemical cos seek changes in duty structure

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line