Asian Development Bank and Nauru: Fact Sheet

Abstract

Updated yearly, this ADB Fact Sheet provides social and economic indicators on Nauru as well as concise information on ADB's operations in the country and contact information. Nauru—the world’s smallest island republic, in Micronesia in the South Pacific—has a population estimated at around 10,000, living on one island about 21 square kilometers in size. The country joined the Asian Development Bank (ADB) in 1991 and has since received one loan for $5 million and seven technical assistance grants totaling $1.9 million. However, in 2002, the Government of Nauru’s noncompliance with tranche conditions resulted in the closure of the loan and the $2.7 million balance canceled. Subsequent governments reversed previously agreed reform measures, making it difficult for ADB to proceed with releases. A reform-minded government was elected in October 2004, and ADB recommenced assistance in 2005. In September 2006, ADB reviewed its 1998 Graduation Policy governing the access of countries to different types of ADB resources. As part of this review, and in light of Nauru’s high level of indebtedness, ADB reclassified Nauru as a Group A country (Asian Development Fund only). In June 2008, Australia paid out Nauru’s arrears, and the country is now able to access assistance through ADF resources.