South Sudan in talks with Qatar National Bank after $1 billion court ruling
May 29, 2024 (JUBA) – South Sudan announced today that it is actively negotiating with Qatar National Bank (QNB) to reach an amicable resolution after a court ordered the nation to pay $1 billion for a defaulted loan.
Finance Minister Daniel Awou Chuang assured the public that the government is committed to fulfilling its obligations and described the ongoing discussions as a means to overcome misunderstandings regarding the payment process. “We have not refused to pay,” Chuang stated. “The delay occurred due to other pressing commitments, but we have initiated talks with QNB, and progress is being made.”
Chuang emphasized the strong and friendly relationship between South Sudan and Qatar, expressing optimism about elevating ties to a strategic level. He confirmed the government’s dedication to resolving the issue promptly, with the outcome of the talks determining the final payment method.
The financial strain on South Sudan stems from its heavy reliance on oil revenue, which has been significantly impacted by regional conflicts, including the war in Sudan and the Houthis’ threats to disrupt maritime traffic in the Red Sea. These factors have led to a substantial decrease in oil exports, hampering the nation’s ability to meet its financial obligations and provide essential services.
Exacerbating the situation, a crucial pipeline carrying a significant portion of South Sudan’s crude oil has been damaged since February 6th, 2024. Repairs have been stalled due to ongoing clashes between Sudanese military factions, rendering the area inaccessible to technical teams.
Despite these challenges, the South Sudanese government remains determined to find a mutually agreeable solution with QNB, aiming to restore financial stability and strengthen its relationship with Qatar.
(ST)