*Scheme aims to support salaries and rents of companies affected by Covid-19
The Qatar Development Bank (QDB) has launched the National Guarantee Programme that provides guarantees to local banks to grant interest-free loans to private companies affected by the Covid-19.
The programme is being implemented as part of the directives of His Highness the Amir Sheikh Tamim bin Hamad al -Thani to support and provide financial and economic incentives amounting to QR 75bn to the private sector and directives of HE the Prime Minister and Minister of Interior Sheikh Khalid bin Khalifa bin Abdulaziz al -Thani, to allocate guarantees worth QR 3bn to local banks. The scheme is run in cooperation with the Ministry of Finance and the Qatar Central Bank (QCB) and all banks operating in the country.
The National Guarantee Programme aims to support salaries and rents of companies in the private sector. QDB will manage and issue the guidelines for this programme, while banks operating in the country will grant the financing on the basis of a guarantee from the QDB.
According to the QDB, companies wishing to benefit from the programme are required to be fully owned by the private sector, and registered in the wage protection system in force in Qatar.
Regarding the application mechanism , Qatar Development Bank said official representatives of the companies should communicate with the commercial and Islamic banks in which their accounts are registered for the wages protection system, and submit requests for benefits exclusively through commercial and Islamic banks operating in the country.
QDB will provide 100% guarantee to the commercial and Islamic banks granting the financing without any fees or commission being charged for the grace period, provided that the financing is paid by the beneficiary company to the commercial and Islamic donor banks within a maximum of three years, including a one-year grace period.
The Chief Executive Officer (CEO) of Qatar Development Bank Abdulaziz bin Nasser al-Khalifa said the launch of the National Guarantee Programme to respond to the consequences of Covid-19 in cooperation with the Ministry of Finance and the Qatar Central Bank and all commercial and Islamic banks in Qatar, is a continuation of the efforts of the State to provide all types of support for SMEs and various components of the private sector in the country during the current circumstances.
He added that the programme will give private companies great ability to face the economic effects associated with the repercussions of the pandemic , and will ensure that they continue to work in a manner that does not affect the general course of their commercial operations, which will give them a greater ability to continue after the difficulties associated with the current circumstance and the return of matters to normal.