Latest news with #InternationalCentreforSettlementofInvestmentDisputes
Business Insider
19-06-2025
- Business
- Business Insider
Africa's poorest country faces $1 billion battle in U.S. court over war-era loan default from Qatar
Qatar National Bank (QNB) has taken legal action against South Sudan in a U.S court, seeking to enforce a $1 billion arbitration award after the country defaulted on a wartime loan. Qatar National Bank (QNB) has initiated legal action in the U.S. to enforce a $1 billion arbitration award against South Sudan South Sudan defaulted on a $700 million wartime loan from QNB, which has accrued additional debt due to penalties and interest. South Sudan's civil war severely impacted the economy, reducing GDP significantly and causing widespread challenges 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. The South Sudan war 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 t hrough its contract and ICSID membership.
Business Insider
17-06-2025
- Business
- Business Insider
Mali to take over Canadian-owned Barrick Gold mine over tax dispute
A Malian court has ordered Barrick Gold's Loulo-Gounkoto gold mining complex to be placed under provisional administration for six months, as tensions escalate between the Canadian mining giant and Mali's military-led government over alleged unpaid taxes. A Malian court has placed Barrick Gold's Loulo-Gounkoto mining complex under provisional administration for six months. The tensions between Barrick Gold and Mali's government stem from allegations of unpaid taxes and inequitable contracts. Barrick has requested international arbitration to resolve disputes while Mali increases measures such as employee detentions. On Monday, Judge Issa Aguibou Diallo instructed that Zoumana Makadji, a chartered accountant and former Malian Minister of Health, be appointed as the provisional administrator within 15 days. This move effectively shifts operational control of one of Africa's most valuable mining assets to an external authority. Dispute over taxation and past agreements Barrick Gold, Africa's largest gold producer, has found itself at odds with Malian authorities, who accuse the company of owing significant unpaid taxes and of benefiting from lopsided contracts signed under previous administrations. In December, tensions peaked with the issuance of an arrest warrant for Barrick CEO Mark Bristow and the company's offer of a $370 million settlement to the government. " While Barrick's subsidiaries remain the legal owners of the mine, operational control has been transferred to an external administrator," the company confirmed in a statement on its website. DON'T MISS THIS: International arbitration and escalations Barrick has since submitted an arbitration request to the International Centre for Settlement of Investment Disputes (ICSID) to resolve its differences with Mali concerning the Loulo-Gounkoto complex. However, rather than awaiting arbitration outcomes, the Malian government intensified its actions by detaining several Barrick employees and halting gold exports. The company, which has operated in Mali for three decades, insists it is still open to dialogue with authorities, stating it remains committed to "engaging with the government of Mali, in parallel, to identify a constructive, mutually acceptable solution." Employee detentions and rising pressure Barrick strongly condemned the ongoing detention of its employees, branding it "deeply concerning and inconsistent with the trust, transparency and accountability required for a genuine long-term partnership." The company further criticised the Malian government's conduct, noting that "no credible rationale has been presented to justify this detention," and accused the government of using the detained staff as leverage in ongoing negotiations. Wider context: Mali's mining sector under strain Mali, a top gold producer on the African continent, is grappling with internal security issues and economic challenges. Since the military takeover in 2020, the transitional government has exerted increasing pressure on foreign mining operators to boost revenue collection. In a related case last November, the CEO of Australia-based Resolute Mining and two staff members were arrested in Bamako. Their release followed the payment of $80 million to the Malian government, with a further $80 million pledged.
Arab News
29-04-2025
- Business
- Arab News
Toward a shared future: Deepening Peru-Saudi Arabia cooperation
In an increasingly interconnected world that is facing complex challenges, fostering international cooperation is not only necessary — it is our shared responsibility. As I prepare for my visit to the Kingdom of Saudi Arabia, I am struck by how much potential lies in building bridges between our nations. Despite their geographical distance, Peru and Saudi Arabia share a common vision rooted in economic cooperation. United by their historical and cultural richness, both countries are committed to global integration and a mutually beneficial relationship based on economic complementarity. Strategically located on the Pacific coast of South America, Peru serves as a central economic gateway to the region. With a population of more than 34 million and a territory of 1.28 million sq. km, the country has become an example of macroeconomic stability and a regional leader in trade and investment. In 2024, Peru maintained solid economic performance with gross domestic product growth of 3.3 percent, inflation contained at 1.97 percent and a record total export value of $74.6 billion. Supported by more than three decades of sound economic policies, Peru offers a stable and investor-friendly environment, reinforced by a legal framework that guarantees equal treatment for foreign investors and adherence to international investment protection mechanisms such as the International Centre for Settlement of Investment Disputes and the Multilateral Investment Guarantee Agency. This foundation ensures legal predictability and long-term stability, key elements for Saudi investors seeking strategic and secure opportunities. In addition, the country's trade-led growth model is supported by more than 20 free trade agreements and 32 bilateral investment treaties, a network that provides preferential access to key global markets for 87 percent of the country's exports. Despite their geographical distance, Peru and Saudi Arabia share a common vision rooted in economic cooperation Elmer Schialer In terms of maritime connectivity, Peru plays a crucial role as a major logistics hub in Latin America, facilitating international trade through its well-developed port infrastructure. In 2024, Peru was ranked 37th in the Liner Shipping Connectivity Index, making it the third most connected country in South America. This enhanced logistical integration complements Peru's foreign policy, which is firmly based on international law and economic cooperation and offers Saudi companies a favorable gateway to expand their commercial presence in our region. Bilateral ties between Peru and Saudi Arabia began in 1986 with the establishment of diplomatic relations. Subsequently, Peru opened an embassy in Riyadh in 2012 and Saudi Arabia followed suit in Lima in 2013, marking a milestone in their relations. Since then, economic and political ties have grown progressively, reflected in trade exchanges that have reached a peak of $188 million in recent years. In addition, political consultation mechanisms facilitate dialogue and ensure that bilateral cooperation remains robust and forward-looking. These engagements provide a platform to advance negotiations and sign new agreements, such as the drafts of general cooperation and air services agreements. Saudi Arabia is an important partner for Peru in many ways. As the largest economy in the Middle East, it stands as a global leader in financial innovation, technological development and industrial growth. I deeply admire the ambition and clarity of purpose behind Vision 2030, which resonates strongly with Peru's own national development strategies. This alignment creates fertile ground for collaboration — not just at the governmental level, but among our business communities and societies as a whole. I truly believe that the complementarity between our two economies offers a powerful basis for a stronger and more dynamic partnership. We each bring unique strengths to the table. Peru, for example, is proud to be a trusted supplier of high-nutritional agricultural products like blueberries, grapes and avocados. At the same time, we recognize Saudi Arabia's vital role in providing industrial inputs and advancing technological innovation. This mutual exchange reflects the alignment of the two economies and underlines the potential for further expansion of trade and investment in infrastructure, mining, energy and related industries. The complementarity between our two economies offers a powerful basis for a stronger and more dynamic partnership Elmer Schialer Peru offers opportunities in a number of sectors. Notable projects include our petrochemical plant project, the Southern Peru Integrated Gas Transportation System and the 2025-2034 Transmission Plan in energy; El Galeno and Los Chancas in mining; and the Andean Longitudinal Highway (Section 4), the Ancon Industrial Park and the Ilo Desalination Plant in infrastructure. These large-scale initiatives offer unique opportunities for Saudi investors to contribute to Peru's economic transformation, while ensuring sustainable and profitable returns. It is worth noting that Saudi capital is already present in Peru, particularly in the oil and gas sector, providing a promising foundation for deeper bilateral investment ties. As I travel to Saudi Arabia, I do so with a sense of real excitement — for the conversations we will have, the opportunities we will uncover and the friendships we will strengthen. It is my firm conviction that Peru and Saudi Arabia can build a lasting and forward-looking relationship, one that is rooted in trust, respect and a shared commitment to growth. In this spirit, Peru warmly welcomes Saudi businesses, investors and policymakers to discover the vast opportunities that this dynamic relationship can offer. Together, we can open new economic frontiers and lay the foundation for a future of shared prosperity, innovation and enduring cooperation.
