Qatar Bank requests United States Judiciary to Enforce Arbitration Ruling Against South Sudan
The Qatar National Bank is now turning to the United States Judiciary, requesting the latter to Enforce the International Arbitration Ruling against South Sudan
The Qatar National Bank has filed a request with a federal court of the United States in Washington, D.C., seeking the enforcement of an international arbitration ruling that obligates the government of South Sudan and its central bank in Juba to repay debts exceeding one billion dollars.
This step is being taken after years of default on loans provided to support essential imports during the country’s economic crises and ongoing armed conflicts.
Legal documents reveal that the bank has asked the United States District Court to recognize the arbitration decision issued by the International Centre for Settlement of Investment Disputes (ICSID) as a final and binding judicial ruling, in accordance with international agreements to which both the United States and South Sudan are parties.
The dispute dates back a few years ago, to the period following South Sudan’s independence, when the government obtained loans from Qatar National Bank to finance food, medical, and agricultural purchases, as well as construction materials and oil.
As the crisis worsened due to civil war backed with the collapse of oil revenues in South Sudan, the bank was compelled to provide additional financial facilities to Juba.
After multiple attempts to reschedule the debt, loan repayments ceased, prompting the bank to resort to international arbitration.
The ruling, issued in favour of the bank, compels South Sudan to settle the total amount, including the principal debt, accrued interest, and legal costs.
The bank confirmed in its filings that the government has neither made any payments nor taken legal action to obstruct enforcement, necessitating the request for U.S. court intervention under the country’s obligations under the International Centre for Settlement of Investment Disputes (ICSID) Convention.
At the moment, South Sudan faces mounting financial pressures amid accumulating debts and declining international market confidence.