Sovereign paid a claim to a European commercial bank for a missed scheduled payment on an oil-backed loan to an international oil trader. The insured loan had refinanced the oil trader’s prepayment facility to the Republic of Congo’s state-owned oil company for future deliveries of crude oil. Insufficient crude oil was delivered by the national oil company which led to the loan default. Discussions between the oil trader, the financing banks, the Government and the state oil company are ongoing.
