2005 - Non-Payment / Dominican Republic
Sovereign paid a claim to three European commercial banks for a scheduled payment which was missed on an export finance loan to the Government of the Dominican Republic. The Dominican Republic is involved in rescheduling all of its commercial bank debt as a result of an economic crisis which began in 2003. Sovereign recognised the restructuring as involuntary and falling within the policy's scope of coverage and the claim was paid in full and on time.