Flag and logo of Qatar National Bank - courtesy

Qatar National Bank (QNB) has petitioned a US federal court in Washington, D.C., to enforce a $1 billion award against South Sudan after the country failed to pay back a $700 million loan it received during its civil war years.

US media reported that QNB says South Sudan and its central bank have not yet settled the award or challenged it nearly a year after it was made by a tribunal under the International Centre for Settlement of Investment Disputes (ICSID).

“There are no grounds for this court to deny recognition and enforcement of the award,” QNB said in its petition.

The bank said it started working with South Sudan after its independence in 2011.

The Doha-based commercial bank said it provided loans to help South Sudanese businesses buy food, agricultural products, pharmaceuticals, and other essential goods to aid the country’s development.

In 2013, when civil war broke out and oil production fell, QNB said it provided additional financing $250 million to help South Sudan through the crisis.

The Bank of South Sudan  reportedly fell into default in May 2015 and was unable to pay back its loans.

Subsequently, the two sides struck an agreement in 2016 to reschedule payments.

Later, in 2018, QNB provided a new $700 million term loan to help South Sudan clear its previous dues and stabilize its payments.

QNB says it went to arbitration in 2020 after South Sudan failed to make payments in 2019.

The ICSID tribunal in January 2024 ruled in QNB’s favor and demanded South Sudan pay back the amounts in full.

Representatives for QNB said this ruling must be enforced immediately.

The Qatari bank is represented by lawyers from Withers Bergman LLP. South Sudan’s lawyers were unavailable for comment on Monday.

The case, Qatar National Bank (Q.P.S.C.) v. The Republic of South Sudan, is currently before the US District Court in Washington, D.C.

South Sudan government has not commented on the QNB’s lawsuit.

The QNB’s suits adds to the long list of lawsuits launched against the government of South Sudan.

Last month, government Information Minister Michael Makuei Lueth said the international court of arbitration had substantially reduced Vivacell’s claim against the government from 2.9 billion US dollars to just over 48 million US dollars.

The court had initially awarded Vivacell USD 1 billion after the mobile company sued the government for shutting down its operations in March 2018.

The government shut down the company accusing it of failing to pay taxs and  license fees dating back to when the country gained independence.

Early this month, the government of South Sudan said it had agreed with Afreximbank to settle a $657 million loan dispute, out side the court.

The Cairo-based bank had filed a lawsuit in May over the government’s failure to repay the loan.

However, the two sides said they had reached an agreement during a high-level meeting chaired by Vice President and Chairperson of the Economic Cluster, Dr. Benjamin Bol Mel