Following the outbreak of the Covid19 pandemic in 2020, Qatar kicked off the National Response Guarantee Program (NRGP) to support the private sector by providing companies with the necessary financial support while allocating, through Qatar Development Bank, 100% guarantees to local banks to the tune of 5 billion QR. The program is a guarantee scheme by the government of Qatar to help mitigate the pandemic’s repercussions on private firms and to finance their short-term payments such as staff payroll and rental fees.

QDB has continuously worked on developing and updating the program since its launch, extending the grace period and increasing the financing ceiling for beneficiaries in accordance with the evolving needs of the private sector and the changing dynamics of the local and global economic landscape. The program has proved to be a success, benefitting over 4,200 companies with total guarantees amounting to 3.6 billion QR.

In line with its ongoing efforts to adapt the program to emerging challenges, ensure the financial sustainability of the private sector and reduce the credit burden on companies, QDB is introducing a new amendment offering beneficiaries the opportunity to transfer NRGP facilities from partner banks to QDB (outstanding Principal only). This will allow for flexible financing options (i.e., lower profit rate and affordable repayment terms), which will contribute to facilitating the repayment of existing facilities, improve companies’ cash flows and mitigate an increase in clients’ debt burden as a result of higher lending rates and short repayment terms.