Written by: Badr Ahmed

A U.S. federal court in Washington, D.C., ruled in favor of Qatar National Bank (QNB) in a lawsuit against the Republic of South Sudan and the Bank of South Sudan (BoSS), in a case relating to a loan obtained by Juba during the years of civil war, with the total value of financial claims now exceeding $1.02 billion.

A US court orders South Sudan to pay more than $1 billion.

The court ruled to enforce an international arbitration ruling obliging the government of South Sudan and its central bank to pay the amount owed to the Qatari bank, in a move that represents a significant legal development that could exacerbate the financial and economic pressures facing the East African nation.

The roots of the conflict go back to a loan of about $700 million obtained by the government of South Sudan during the civil war, before interest, costs and compensations accumulated over the years, raising the total amount to be repaid to more than $1 billion.

An arbitration panel of the International Centre for Settlement of Investment Disputes (ICSID) had previously ruled in favor of Qatar National Bank, finding that the government of South Sudan and its central bank had breached their contractual obligations regarding loan repayment. The panel rejected the South Sudanese side's arguments based on difficult economic and financial circumstances, emphasizing that economic crises do not exempt states or financial institutions from fulfilling their legal and contractual obligations.

The ruling issued by the US Federal Court gives the international arbitration award enforcement power within the United States, allowing the bank to take legal action to enforce the award and collect its dues in accordance with US laws, in the event that no settlement is reached between the two parties.

This development comes at a time when South Sudan is suffering from complex economic conditions, including declining revenues, high levels of debt, and pressure on public finances, along with political and security challenges that have affected the country’s ability to meet its financial obligations.

According to the case documents, the court asked the parties to submit a draft of the final ruling by August 12, 2026, in preparation for completing the legal procedures and drafting the final ruling, indicating that the case has not been completely closed yet, despite the court settling the issue of enforcing the international arbitration ruling in favor of Qatar National Bank.

This ruling is one of the biggest financial disputes facing the government of South Sudan before the American judiciary, and it may have direct repercussions on the country’s financial situation and its future dealings with international banking and financial institutions.