30 Jun 2004

Nauru government signs new refinancing deal for trust debt

2:52 pm on 30 June 2004

The new government in Nauru says it has signed a refinancing deal for its trust debts but it is not revealing who is behind it.

Fabian Ribauw, the chairman of Nauru Phosphate Royalties Trust, says because of a confidentiality clause, he is unable to give details of who the financiers are, or what terms and conditions have been imposed.

But, he says it is more than sufficient to cover the trust's debt which owes GE Corporation 165 million US dollars.

One of the trust's assets, the Mercure hotel, was sold by the receivers to recover some of the debt.

Mr Ribauw says he hopes the receivers accept the refinancing deal.

"I can tell you now that there is only one refinancing option that we have agreed on that was agreed to by the cabinet, and it has to be tabled in parliament, in order to be passed by the house. That financier has been advised of all the resolutions that have been passed in Nauru. Now, we are working together to try and resolve the GE problem."

Fabian Ribauw says the refinancing deal will be presented to the receivers this week.