Nauru sets up a new trust fund

The Nauru government says it has set up a sovereign trust fund with an initial deposit of just over US$15 million.

According to RNZI, in a statement, the government said that by the middle of the year it expects to have US$24 million based on an Asian Development Bank grant, and annual contributions by Australia and Taiwan.

The Intergenerational Trust Fund will be chaired by the finance minister, David Adeang.

He said the Fund is to provide an ongoing source of revenue to Nauru, and by about 2035 it will eventually support Nauru in its future revenue streams.

Mr Adeang says the Fund will begin distributions to government revenue when the committee determines that the fund has reached a sustainable asset value.

Nauru's previous trust fund failed spectacularly in the 1990s after accumulating hundreds of millions of dollars and making Nauruans some of the richest people in the world.