South Sudan: Government have defaulted on a $700m loan!

In Juba, there should be a crisis. However, we can expect that the Transitional Government of National Unity (TGoNU) are granting new loans to cover for defaulting old loans. As the Qatar National Bank who has loaned the Republic $700 millions United States Dollars.

The TGoNU have defaulted and not paid their first instalment on time, which is the reason for why the QNB have sued the government. The loan from the Qatar is now due and the Republic got to cough up the money owed.

President Salva Kiir Mayardit and his cronies got to figure something out. They need to find the money and ensure they can answer for it. Because, now the remedies are only repayment or instalments of payments, which was scheduled, but the TGoNU defaulted on that.

The QNB have done the right thing. Who knows where the millions of dollars has gone. Only that they are served to repay it now. The state was supposed to start paying instalments from March 2019. That is something it didn’t do and over 1 and half year later. There still haven’t been a coined in return.

This is why the Qatari Bank is serving the authorities of Juba this International Court Case. As they haven’t hold up their bargain. They have misused their trust and their office. Tried to run away from the bill, which they have already cashed in.

This is a huge sum to return to Qatar, but the South Sudanese government took the loan. They were supposed to pay $20m at the time. Alas, they were not willing to do that. That is why they have put themselves into this predicament.

The TGoNU has defaulted on this loan. The Republic have taken other loans too. This is the one the public knows about. We can wonder if they have issues with others too and what extent of debt burden the state has. As this is just to one bank, but they have also taken loans from Multi-National Organizations, International Banking Institutions and others. Which will also have a grace period ending in the future. That means, the state has to pay more in interests and bigger debt repayments.

That will hurt the state, a state which has nothing to give away. As the government supposed to build institutions and government services to the greater public. Alas, if this continues, then they cannot afford to do so. Because, they took out bad loans and didn’t have the foresight about the costs of doing so. Peace.

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