An Australian newspaper reports Nauru has reneged on a deal to settle a 27-million US dollar lawsuit involving global fund manager Firebird, following a secret meeting in Washington.
Nauru is trying to overturn a decision that froze the country's bank accounts. Photo: AFP
The Australian Financial Review reports that Nauru's Finance Minister, David Adeang, and the Minister for Home Affairs, Ludwig Scotty, met with representatives from Firebird in mid-October.
It is reported the deal made would have seen the Nauru government commit to paying Firebird 4.3 million US dollars upfront, secured by a trust derived from phosphate sales.
A further 4.3 million US dollars would be paid within 12 months, and 4.3 million US dollars every year after until the debt was paid in full.
Firebird reportedly agreed to the terms, but the next day a member of the Nauruan travelling party called off the deal.
Firebird's appeal at the High Court in Australia is due to start on December the 1st following a lower court's dismissal of its claim against the Nauru government.
