The Export Credit Guarantee Corporation (ECGC) on Friday settled defaults relating to repayment of working capital credit obtained by six garment exporters here from four nationalised banks.

The amount came to Rs. 15.26 crore under the Export Credit Insurance to Banks (ECIB).ECGC’s Assistant General Manager A.R. Muralidharan told The Hindu that the defaulted amount was spread over 10 borrowings made by the six exporters from Punjab National Bank, Indian Bank, Canara Bank, and Central Bank of India during 2009-10 and 2010-11 financial years, in order to meet capital requirements during the pre-shipment and post-shipment phases.

The ECIB scheme was introduced by the ECGC to protect the banks against the losses incurred in extending credit advances to the exporters because of default in repayment of the loans by the exporters because of various reasons in the production time or non-payment of receipts in the post-shipment stage. Mr. Muralidharan said that with the payment made to the banks on the day, the total settlement under ECIB scheme during the current fiscal in Tirupur district had gone up to Rs. 34 crore and 12 banks benefited from it.