Commerce Min asks ECGC to come up with a robust policy on guarantee or insurance for traders
New Delhi, June 22 (KNN) The Union Minister for Commerce, Piyush Goyal asked Export Credit Guarantee Corporation of India (ECGC) to come up with a robust policy on guarantee or insurance for traders and that would help bankers lend exporters at affordable rates.
Addressing members of the Confederation of Indian Industries (CII) here, Goyal said that ECGC can play a role of credit enhancement agency for exporters.”
"We are trying to convert the ECGC policy to a credit-enhancing instrument that gives comfort to bankers (in lending to exporters)," he said adding this mechanism can give a confidence to bankers that in case of problem, they would be comfortably compensated.
In addition, he announced that the government is working with the Reserve Bank of India and private banks to reduce lending rates for exporters.
Goyal said the ministry is in dialogue with banks to see ways to extend foreign currency loans to exporters.
There are ways to resolve the problem of inadequate and expensive credit without putting a significant stress to the exchequer, he added.
He said providing subsidies is not a solution to any trade-related issues.
The minister also said the ministry is actively looking at refund of state levies for exporters.
With regard to free-trade agreement, he said, "I would not call" FTA with Asean as the "best of FTAs" as some of the clauses are quite "onerous that do not gave us enough room to engage or recalibrate".
"I have already flagged with the concerned countries the issues that need to be discussed and debated and corrected and our intention to review the FTAs and get back on the drawing board on some of the issues," he added.