The Nauru government says a report about the involvement of Australian banks in Nauru is misleading
The ABC reported one of Australia's biggest banks told the Nauru government it will no longer do business with it or any of its entities.
The bank, Westpac, has also told its Australian customers who do business with the Nauru government that they will have to close their accounts by the end of the month.
A spokesperson for Westpac in Australia declined to comment, citing customer confidentiality.
The ABC report has been carried by other international media.
But in a statement, the Nauru government says the facts are very different from this fabricated story
It says that the business relationship it had with its former banking partner [Westpac] was severed when the bank withdrew financial services to not only Nauru, but nearly all of the Pacific small island states.
It noted that this bank has also sold most of its South Pacific banking operations to Bank South Pacific.
The statement goes onto say that the Nauru government has made a decision to strengthen its business and financial relationship with its chief financial partner, Bendigo Bank, which established an agency in 2015.
The Nauru government statement then accuses the ABC of continually being the mouthpiece of Nauru opposition MPs and interfering in its domestic affairs.
Most of Nauru's revenue comes from foreign aid and money generated by holding thousands of asylum seekers and refugees sent by Australia as part of its hardline border policy.
Earlier this week it was announced that Nauru had joined the International Monetary Fund and the World Bank.