3 May 2004

Nauru considers two refinancing proposals

3:30 pm on 3 May 2004

Nauru's Minister of Economic Development, Remy Namaduk, says the government is considering two refinancing proposals to stave off bankruptcy.

He says the government has now approved a proposal by a US merchant bank, Babcock & Brown, to be presented to receivers sent to recover loans made to Nauru by GE Capital.

Mr Namaduk's comments come after President Rene Harris was reported to have signed off on an agreement with an Asian property group, HWC, to take over the assets.

The receivers, PPB, say they weren't party to the agreement nor are they certain that the government has the mandate to approve anything due to a deadlock in parliament.

Mr Namaduk accepts this, and says the HWC proposal is only in its infancy...

"The reason why GE is reluctant to talk to these people is because they are already talking to other people, who they know are mandated by government to do it. And if their offer is acceptable by those entities, then they will come back and get it approved by cabinet to go ahead and process it."

Remy Namaduk