Thursday, August 14, 2025
LBNN
  • Business
  • Markets
  • Politics
  • Crypto
  • Finance
  • Energy
  • Technology
  • Taxes
  • Creator Economy
  • Wealth Management
  • Documentaries
No Result
View All Result
LBNN

Africa’s poorest country faces $1 billion battle in U.S. court over war-era loan default from Qatar

Simon Osuji by Simon Osuji
June 19, 2025
in Business
0
Africa’s poorest country faces $1 billion battle in U.S. court over war-era loan default from Qatar
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

The petition, filed in a U.S court in Washington, D.C., follows South Sudan’s failure to repay a $700 million loan obtained from Qatar during the height of its civil war, a debt that, with interest and penalties, has now ballooned to over $1 billion.

The original loan was intended to stabilize South Sudan’s fragile economy during a period of intense internal conflict.

However, nearly a year after an international tribunal under the International Centre for Settlement of Investment Disputes (ICSID) ruled in favor of QNB, South Sudan and its central bank have reportedly neither paid the award nor challenged it.

QNB’s move to seek enforcement in the U.S. has revealed the growing frustrations over the lack of compliance and highlights how sovereign debt disputes are increasingly playing out on global legal stages.

According to the International Monetary Fund (IMF), South Sudan had the lowest GDP per capita in 2025, making it one of the poorest countries in Africa. Thus, the $1 billion court case with Qatar National Bank (QNB) over an unpaid wartime loan reflects the severity of the country’s economic crisis.

If the U.S. court agrees to uphold the award, South Sudan could face asset seizures or further diplomatic pressure to meet its obligations.

Related posts

Egypt issues a stern warning to Ethiopia, promising to take action under international law

Egypt issues a stern warning to Ethiopia, promising to take action under international law

August 13, 2025
Shiba Inu Price Target Surges as Shibarium Hits $1.5B

Shiba Inu Price Target Surges as Shibarium Hits $1.5B

August 13, 2025

The South Sudan war

South Sudan had the lowest GDP per capita in 2025 as per IMF, and its $1 billion court battle with QNB highlights the depth of its economic crisis.

The South Sudanese civil war, which ran from December 2013 to February 2020, began as a political clash between President Salva Kiir and former Vice President Riek Machar, but quickly turned into an ethnic conflict between the Dinka and Nuer.

Coming just two years after independence in 2011, the war exposed the country’s weak institutions and deep divisions.

Beyond the human cost of over 400,000 deaths and millions displaced, the economy lost more than $28 billion in GDP between 2013 and 2018. Oil production which is South Sudan’s main revenue source, plunged, inflation soared, and public services collapsed as the war devastated infrastructure and drove away investors.

The loan dispute

South Sudan’s loan dispute with Qatar National Bank (QNB) began after independence in 2011, when the country secured credit to fund essential imports.

Shortly after becoming a nation in 2011, South Sudan and its central bank secured loans from QNB to fund critical imports such as food, medicine, and refined oil. When the civil war erupted in late 2013 and oil revenues collapsed, QNB extended additional credit, including a $250 million top-up.

By 2015, South Sudan began defaulting, prompting two debt renegotiations. The final 2018 agreement consolidated the loans into a $700 million, 15-year facility, with repayments set to begin in March 2019. After drawing down about $659.8 million, South Sudan missed its first payment, triggering a formal arbitration process.

QNB filed a claim in 2020 under ICSID rules. Following hearings in London, the tribunal ruled in January 2024 that both South Sudan and its central bank had breached the loan terms.

A final award issued in May ordered them to pay over $1.02 billion, including principal, interest, and legal costs.

Despite the ruling, QNB says South Sudan has neither paid nor contested the award.

According to court filings reviewed by SudansPost, QNB argues that under U.S. law and the ICSID Convention, the arbitration award must be enforced “like a final court judgment.” The bank says South Sudan waived any sovereign immunity through its contract and ICSID membership.

“This Court is not permitted to re-litigate the arbitration; its role is solely to confirm the award and enforce payment,” QNB’s lawyers stated, requesting full judgment with interest and legal fees.

Source link

Previous Post

Ethio Telecom Unveils Big Data Platform to Boost Agriculture in Oromia

Next Post

This AI Model Never Stops Learning

Next Post
This AI Model Never Stops Learning

This AI Model Never Stops Learning

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

Kenyan-born Sophie Davarich shares US military accomplishment

Kenyan-born Sophie Davarich shares US military accomplishment

2 years ago
Joe Biden Lost the Internet. Kamala Harris Is Trying to Win It Back

Joe Biden Lost the Internet. Kamala Harris Is Trying to Win It Back

1 year ago
Tesfaye Urgessa is the First Artist to Represent Ethiopia at the Venice Biennale

Tesfaye Urgessa is the First Artist to Represent Ethiopia at the Venice Biennale

1 year ago
Veyl Ventures announces new asset purchase and creation of new entity Veyl Wellness Works LLC, dba Nutritio Labs

Veyl Ventures announces new asset purchase and creation of new entity Veyl Wellness Works LLC, dba Nutritio Labs

2 years ago

POPULAR NEWS

  • Ghana to build three oil refineries, five petrochemical plants in energy sector overhaul

    Ghana to build three oil refineries, five petrochemical plants in energy sector overhaul

    0 shares
    Share 0 Tweet 0
  • The world’s top 10 most valuable car brands in 2025

    0 shares
    Share 0 Tweet 0
  • Global ranking of Top 5 smartphone brands in Q3, 2024

    0 shares
    Share 0 Tweet 0
  • Top 10 African countries with the highest GDP per capita in 2025

    0 shares
    Share 0 Tweet 0
  • When Will SHIB Reach $1? Here’s What ChatGPT Says

    0 shares
    Share 0 Tweet 0
  • Privacy Policy
  • Contact

© 2023 LBNN - All rights reserved.

No Result
View All Result
  • Home
  • Business
  • Politics
  • Markets
  • Crypto
  • Economics
    • Manufacturing
    • Real Estate
    • Infrastructure
  • Finance
  • Energy
  • Creator Economy
  • Wealth Management
  • Taxes
  • Telecoms
  • Military & Defense
  • Careers
  • Technology
  • Artificial Intelligence
  • Investigative journalism
  • Art & Culture
  • Documentaries
  • Quizzes
    • Enneagram quiz
  • Newsletters
    • LBNN Newsletter
    • Divergent Capitalist

© 2023 LBNN - All rights reserved.