South Sudan to Pay $1 Billion to Qatar Bank After Losing Court Case

South Sudan to Pay $1 Billion to Qatar Bank After Losing Court Case By Sruthi Nair - May 14, 2024
Bank of South Sudan

Bank of South Sudan

The Republic of South Sudan has been directed to pay over one billion dollars following a ruling by the International Centre for Settlement of Investment Disputes (ICSID) in favor of Qatar National Bank (QNB).

The dispute originates from a $700 million loan extended by the Qatar bank to South Sudan back in 2012. However, in 2015, the youngest nation in the world engaged in a subsequent agreement with QNB regarding the repayment terms for the borrowed funds.

Subsequently, the loan underwent restructuring in 2016 and was further augmented in 2018 after South Sudan requested additional funds, with a repayment period spanning 15 years from 2019 onwards.

Nevertheless, South Sudan defaulted on loan repayments, leading the Qatar-based bank to pursue legal action against the East African nation.

QNB initiated proceedings against South Sudan and the Bank of South Sudan on October 7, 2020 (ICSID/Arb/20/40), and the tribunal was fully constituted by March 24, 2021. The tribunal was composed of Mr. Peter J. Rees (British, representing the Investor), Ms. Hélène Ruiz Fabri (French, representing the Respondents), and Mr. Ucheora Onwuamaegbu as Presiding Arbitrator. The presiding arbitrator (British/Nigerian) was appointed by the Chairman of the ICSID Administrative Council.

While the final award remains unpublished, documents obtained by Sudan Tribune indicate the outcome of the ruling.

By Sruthi Nair - May 14, 2024
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