3 May 2004

New property deal to save Nauru from bankruptcy

6:53 am on 3 May 2004

Nauru is reported to have agreed to a property deal that will save it from bankruptcy.

Under an agreement arranged in Sydney, an Asian property group will take over some of Nauru's investment property in Australia.

In return,the Indian-based Hiranandani or HCW group, says it will wipe out more than two hundred and thirty milion dollars of depbt.

The deal comes a week after the Australian government signed a treaty with Nauru to help it out of a financial crisis after the American company, General Electrical Capital Corporation ,moved to recover its debts.

Raj Hiranandaniof HCW, said he planned to enhance the value of the property portfolio and turn a profit.

HCW stepping in means the properties will not have to be sold to pay the nation's debts.