Team Blitz India
NEW DELHI: Union Minister of Commerce and Industry, Piyush Goyal on June 29 asked the Indian banks to ensure enhanced and affordable credit to MSMEs to achieve the target of $1 trillion merchandise exports. This was stated in a meeting called to discuss the issue of increasing the availability of export credit to the MSME exporters.
The meeting was convened by the Department of Commerce in coordination with Export Credit Guarantee Corporation Limited, (ECGC). It was attended by the top officials of 21 banks which included State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India, Bank of India and Central Bank of India.
A presentation on ‘Export Credit and Export Credit Insurance for Banks (ECIB)’ was made by CMD ECGC, M. Senthilnathan. Based on ECGC’s experience under the scheme of enhanced cover, ECGC has now proposed further modifications to make available adequate and affordable credit to a larger section of MSME exporters. The product facilitates the borrower accounts to be treated equivalent to ‘AA’ rated account with reduced cost of export credit to the exporters.
Piyush Goyal said that the ECGC can examine the extension of the scheme proposed for nine banks, to all the banks, so that the export credit offtake for the MSME Exporters can be increased.
