Australia grants Nauru $64 million to bolster security, banking services (updated)

Bendigo and Adelaide Bank

09/12/2024 03:09

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      Nauru's critical infrastructure not to be used by third
countries
    

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      Australia will be Nauru's primary security partner, PM
says
    

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      CBA to begin operations in 2025 to maintain banking access
    

  
 (Recasts throughout with details from joint statement, adds
banking deal in paragraphs 10-12)
    By Renju Jose
       SYDNEY, Dec 9 (Reuters) - Australia and Nauru signed an
A$100 million ($64 million) aid package on Monday to boost the
Pacific island nation's security, banking and telecommunications
sectors, in a deal aimed at countering China's increasing
influence in the region.
    The new deal prevents third countries from accessing Nauru's
critical infrastructure for security purposes, Australian Prime
Minister Anthony Albanese and Nauru's President David Adeang
said at a joint media briefing.
    "The economic stability of our neighbours benefits our
entire region," Albanese said.
    "(The deal) will strengthen Nauru's longer-term stability
and economic resilience. It is also firmly in Australia's
interests in a peaceful, secure and economically resilient
Pacific region, the region that together we call home."
    Albanese said Australia will remain Nauru's primary security
partner, and pledged fresh investments to support the island's
policing and national security needs. 
    "We appreciate Australia's steadfast support as we try to
address our unique development challenges while we continue
diversifying our economy, exploring innovative opportunities and
safeguarding our region's peace and stability," Adeang said.
    Nauru, the world's third-smallest country, in January
switched diplomatic ties to China from Taiwan, after China built
a port and promised more aid, raising concerns in the West about
Beijing's ambitions in the Pacific region, where Australia and
the United States traditionally have held sway.
    Beijing has already signed defence, trade and financial
deals with some Pacific island states, while the Bank of China
 601988.SS  this year signed an agreement with Nauru to explore
opportunities there.
    Albanese said the deal with Nauru would allow it to maintain
banking services with the Commonwealth Bank of Australia
 CBA.AX , expected to begin operations there in 2025.
    Nauru's only lender, the Bendigo and Adelaide Bank  BEN.AX ,
will end its services there in June.
    Many Pacific Island countries are losing access to banks and
international payments as Western institutions close branches or
cut ties with their counterparts across the sparsely populated
and remote region.
    The World Bank is also preparing an emergency U.S. dollar
facility, backed by the U.S. and Australia, that Pacific island
countries could access for trade and remittances if they are cut
off from global finance.
 ($1 = 1.5640 Australian dollars)

 (Reporting by Renju Jose in Sydney; Editing by Alasdair Pal and
Saad Sayeed)
 ((renju.jose@thomsonreuters.com;))