ECGC claims overwhelm its income in the first half

 The government-owned body is facing over 200 per cent loss claim ratios over the past four to five years as claims paid are 200 per cent more than the premium collected.

 In fiscal 2003, ECGC paid Rs 440 crore in claims to banks though it received only Rs 235 crore in terms of premium income towards credit guarantee cover.

 In the first six months of fiscal 2004, ECGC paid total claims of Rs 64.59 crore against premium collection of Rs 60.7 crore.

 The local and international industry scenario have affected exporters and their ability to make good the credit taken from banks.

 ECGC had to pay Rs 12 crore when a Cochin-based spices exporter failed to meet dues following the spices market taking a fall in 1999-2000. The fall in coffee prices resulted in claims of over Rs 3 crore.

 This month ECGC has paid out more than Rs 50 crore to various banks, said ECGC general manager (banks division) V Viswanathan, as banks make good their losses associated with exporters and curtail their non-performing assets.