Government secures Nauru’s future through Trust Fund
The Government has moved to set up
an internationally managed trust fund so that Nauru's financial
future is secure for generations to
come.
Minister for finance David
Adeang held talks with senior officials of the governments of
Australia and the Republic of China, and the Asian Development Bank
earlier this month in Brisbane, regarding the proposed
establishment of the Nauru Trust
Fund.
The fund is a priority initiative
identified in the Nauru Sustainable Development Strategy that aims
to establish a financial investment vehicle to assist the Republic
of Nauru achieve greater financial autonomy in the long term and
replace uncertain future revenue
streams.
Mr Adeang said the time was right to
establish the trust fund, "given the more favourable macroeconomic
outlook for the Nauru economy and the healthy financial position of
the Government."
"The Government recognises the need
to do things differently from the way we managed the country in the
past. Our aim is to be financially responsible and accountable
while protecting our revenues and producing a future stable
budget."
He said the fund's success would
depend on key partner countries agreeing to become treaty partners,
jointly managing the fund with Nauru.
"Under an international
agreement, this management structure would prevent a unilateral
decision by any Nauru government to withdraw from the fund without
the agreement of the other treaty partners," Mr Adeang
explained.
The Nauru Trust Fund is envisioned
to include financial contributions from Nauru and partner
countries, with a build-up period estimated at 20 years, allowing
for a substantial accumulation of contributions and investment
returns.
Mr Adeang said he was delighted with
the outcome of the meeting, which received the unanimous support of
the development partners.
"The Nauru Government welcomes the
positive and encouraging response by its development partners to
the proposed establishment of the Nauru Trust Fund, and it looks
forward to working with them over the coming months," he
said.
The next meeting will be held in
April to consider the final report and establish practical steps
needed to launch the fund.