The Taskforce on Project Exports, set up by Prime Minister’s Office in June 2002, has recommended in its report that the government should reimburse the losses due to political risks suffered in Iraq since 1991, to the Export Credit Guarantee Corporation of India (ECGC). The claims paid in respect of the Iraq account are estimated to be approximately Rs 800 crore. This assumes greater importance now in the backdrop of the current Iraq war.
“ECGC should be reimbursed for the losses on account of political risks. It has been done in other countries in similar situations where the national governments have paid compensation out of their budgets without affecting the financial position of credit risk insurer,” the report of the task force said.
