Doha, May 20 (QNA) - Qatar Development Bank (QDB) has announced the launch of the Working Capital Stabilization Guarantee Program for private sector companies operating in the services sector, and the Working Capital Stabilization Program to support Qatar-based factories amid current regional developments.

In a statement Wednesday, QDB suggested that the two programs aim to bolster working capital and liquidity, enabling beneficiaries to sustain their operations and navigate challenges effectively and efficiently.

The launch forms part of QDB's strategic role through its Situation Room, which was activated in early March as a proactive support hub that works to strengthen private sector stability by identifying urgent needs and delivering specialized financing and advisory programs to address them.

The Working Capital Stabilization Guarantee Program provides financing facilities through national partner banks, backed by a comprehensive 100% guarantee provided by QDB, to deliver the liquidity needed by Qatar-based companies operating in the services sector. The program is designed to address urgent needs and ease pressure on companies' operations.

QDB provides the guarantees without applying any guaranteed fees to partner banks. The program targets specific sectors at this stage, including Accommodation, Housing, Food and Hospitality Services, Arts and Entertainment, Professional, Scientific and Technical Services, and Administrative and Support Services.

Financing covers salaries, rent, and other operating expenses for up to three months. The guarantee covers the full principal amount of the outstanding financing, with a repayment tenor of up to four years, including a grace period of up to two years.

The Working Capital Stabilization Program provides the liquidity and working capital needed to sustain factory operations and meet essential obligations, enhancing operational readiness and supporting local production.

Direct financing by QDB covers employee and worker salaries, rent, and other operating expenses for up to three months. The repayment tenor is up to four years, including a grace period of up to two years, and the financing carries a maximum profit rate of 3%.

It is worth noting that QDB has recently launched several products, including various support and financing programs, to enable the private sector to respond to current implications. QDB continues to work in coordination with relevant entities in Qatar to design targeted responses to the various challenges facing the private sector, contributing to the resilience of the national economy. (QNA)