South Sudan ordered to pay $1 Billion to Qatar Bank in landmark investment dispute ruling
The Republic of South Sudan has been directed to pay over $1 billion following an International Centre for Settlement of Investment Disputes (ICSID) award in favour of Qatar National Bank (QNB).
The dispute stems from a case filed by QNB against South Sudan and the Bank of South Sudan in October 2020 involving a $700 million loan extended by the Qatar Bank in 2012, earmarked for acquiring goods to facilitate South Sudan's development. However, South Sudan defaulted on this payment.
According to the Sudan Tribune, in 2015, South Sudan entered into another agreement with QNB outlining a repayment plan for the outstanding loan. The loan was restructured in 2016 and further supplemented in 2018 at South Sudan's request for additional funds, with a repayment period of 15 years commencing in 2019.
Despite these arrangements, South Sudan failed to meet its repayment obligations, leading to QNB initiating legal proceedings against the landlocked nation.
The backdrop of South Sudan's challenges includes a protracted civil war spanning from 2013 to 2020. President Salva Kiir's accusations against former Vice President Riek Machar of an attempted coup triggered the conflict, resulting in approximately 50,000 casualties and displacing 1.6 million people.
