Receivers seize Nauru portfolio

RECEIVERS have moved in on the last assets of the tiny Pacific nation of Nauru, taking control of five buildings in Sydney and Melbourne.

Nauru faces defaulting to US financier General Electric Capital Corporation, to which it owes A$236m (£97.87m). GE has given it until 5 May to repay the debt.

'The trust has not been able to keep up with the demands placed upon them from the government in regard to the infrastructure of the island and the upkeep of Nauru,' a GE spokeswoman said.

Apart from its property portfolio, Nauru's only other income is from phosphate mining, but that is almost exhausted.

Nauru President Rene Harris will today go cap in hand to Australia's Foreign Minister Alexander Downer seeking new help. Downer says he is concerned about the problem.