ZIMSEC O Level Commerce Notes: Insurance: Exports Credit Guarantee Department (ECGD)
- Also known as Export Credit Guarantee Corporation (ECGC)in Zimbabwe.
- Covers risk of non payment by importers due to:
- lack of foreign currency.
- Political instability.
- Outbreak of war.
- Overseas state interferences.
- Provides comprehensive policies to cover the whole of export businesses for at least 12 months.
- Provides specific polices to cover single transactions involving construction projects for which payments are spread over a number of years.
- Compensates exporters if an importer defaults.
- Investigates creditworthiness of importers.
- Monitors the importer’s risk change.
- Collects overdue debts.
- Finances the exporter in the interim.
- Policy acts as collateral security for loans given.
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