Qatar Central Bank (QCB) on Thursday said it will start working on a strategy "for gradual reduction of measures introduced to support the national economy" given the recovery from the impact of the coronavirus crisis.
In a statement on Thursday QCB said, “We will begin with the implementation of the future strategy for a gradual reduction of the exceptional support stimulus packages launched within the comprehensive economic support plan of the state.
“This will be done through a gradual and deliberate exit that takes into account the various interactions between monetary policy measures and the continuity of economic and banking activity in the State of Qatar.”
QCB said, “Economic indicators and statistics show that the local financial and banking system is stable, and domestic liquidity and credit rates remain at high levels.”
It said, “Qatar Central Bank continues its proactive liquidity management operations to ensure comfortable liquidity for the banking system while directing interest rates to the required level to facilitate an adequate flow of credit to borrowers in order to maintain financial stability.”
Following the pandemic and in response to the downturn last year, Qatar made available a support package of QR75bn, or about 14% of gross domestic product, of which QR50bn was Qatar Central Bank liquidity support.
Qatar also injected QR10bn into the Qatari bourse, which had infused enormous amount of confidence in the market.
Qatar Central Bank (QCB) followed this promptly with further interest rate cuts, aimed at easing local bank-lending conditions and thereby mitigating the effect on the domestic economy of the global spread of the virus.
Thereafter, local banks had partnered with the Qatar Development Bank (QDB) for the National Response Guarantee Programme (NRGP) announced by the government. The programme offers “guarantees” backed by the Ministry of Finance to the value of QR3bn.
A six-month grace period was also provided to the private sector for the repayment of their loans.
“This will be done through a gradual and deliberate exit that takes into account the various interactions between monetary policy measures and the continuity of economic and banking activity in the State of Qatar.”
QCB said, “Economic indicators and statistics show that the local financial and banking system is stable, and domestic liquidity and credit rates remain at high levels.”
It said, “Qatar Central Bank continues its proactive liquidity management operations to ensure comfortable liquidity for the banking system while directing interest rates to the required level to facilitate an adequate flow of credit to borrowers in order to maintain financial stability.”
Following the pandemic and in response to the downturn last year, Qatar made available a support package of QR75bn, or about 14% of gross domestic product, of which QR50bn was Qatar Central Bank liquidity support.
Qatar also injected QR10bn into the Qatari bourse, which had infused enormous amount of confidence in the market.
Qatar Central Bank (QCB) followed this promptly with further interest rate cuts, aimed at easing local bank-lending conditions and thereby mitigating the effect on the domestic economy of the global spread of the virus.
Thereafter, local banks had partnered with the Qatar Development Bank (QDB) for the National Response Guarantee Programme (NRGP) announced by the government. The programme offers “guarantees” backed by the Ministry of Finance to the value of QR3bn.
A six-month grace period was also provided to the private sector for the repayment of their loans.