All credit insurance cover by Export Credit Guarantee Corporation of India Ltd. (ECGC) on exports to Iraq is likely to come to an immediate stop, after the United Nations suspended its `food-for-oil’ programme ahead of the commencement of hostilities in the Gulf.
ECGC will be taking stock of the current situation and reviewing its approvals for exports to countries neighbouring Iraq, too. It will, however, have to wait for information on shipments on the high seas that may be diverted or brought back.
ECGC’s exposure on exports to Iraq amounted to about Rs 1,500 to1,600 crore over the last year. The latest commitment was in the range of Rs 250 crore.
Top ECGC officials said that the war in Iraq and the UN decision to suspend the `food-for-oil’ programme now means credit insurance cover for further shipments under this programme will automatically stand cancelled.
