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.
About the National Response Guarantee Program (NRGP)
- • Qatar Development Bank has repeatedly updated and developed the program since its inception. This includes extending the grace period and increasing the financing limits for beneficiaries, aligning with the evolving needs of the private sector and the dynamic national and global economic landscape.
• The program's success is evident, with around 4,000 beneficiaries and a total guarantee value exceeding 3 billion Qatari Riyals.
QDB NRGP Portfolio
- • 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 introduced 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, which will improve companies’ cash flows and mitigate an increase in clients’ debt burden as a result of higher lending rates and short repayment terms.
• Since the announcement of the NRGP portfolio, QDB received more than 1,300 requests to transfer the remaining facilities from partner banks, with a value exceeding 1.3 billion Qatari riyals.
End of the program
- • Based on orders by HH Sheikh Tamim bin Hamad Al Thani, the Amir of the State of Qatar, on October 9, 2024 regarding the cancellation of existing loans for companies benefiting from the National Guarantees Program, Qatar Development Bank has officially announced the end of the NRGP journey after four years of supporting the private sector during the pandemic.
• Building on this legacy, and in continuation of the program’s objectives, the “Support” program was launched by QDB, to provide short-term financing at zero fees and profit rates to finance the working capital of active Qatari companies that previously benefited from the NRGP and completed repayment of 75% or more of their loans as of October 9, 2024.
