ECIB Cash Flow Deficit Financing
Export Credit Insurance for Bank
EXPORT CREDIT INSURANCE PACKING CREDIT
Eligibility:
The bank financing an overseas project may be required to extend loan to the contractor to overcome cash flow deficits and ensure smooth and timely execution of the project. Such loans can also be granted to the contractors for execution of deemed export projects in India. The cover provides protection to the banks against losses that bank may suffer due to insolvency and default of the borrower.
Risks Covered:
- Insolvency of Borrower
- Protracted Default Borrower
Loss Coverage:
75%
Period of Cover:
12 Months
Premium rate:
0.12% p.m. on Highest Amount Outstanding
IMPORTANT OBLIGATIONS OF THE BANK:
Obtain cover for each project separately. Maintain advance deposit equivalent to one month’s premium. Submission of monthly declaration of advances granted and repayments made in the account and payment of due premium on or before 10th of the succeeding month. Approval of the Corporation for extension of due date. Default to be reported within 4 months from due date or extended due date of advances. If not recovered, filing of claim within 6 months of the Report of Default. Recovery action after payment of claim and sharing of recovery.