Nauru's Chief Secretary, Willy Star, says the government has been holding talks with a former senior Australian diplomat, Greg urwin, who has been sent to Nauru by Australian foreign minister, Alexander Downer.
Mr Urwin arrived in Nauru following a statement by Mr Downer that Nauru is effectively bankrupt.
Mr Downer said that in six years as Foreign Minister he has not seen a country in as much financial difficulty as Nauru.
Mr Star agrees that Nauru has problems and says one of the first that Australia is helping to deal with is the country's aging power generators.
"Three or four engines need major overhaul but the parts cannot be obtained off the shelf they have to be manufactured they have to be turned which will cost more money than to buy a new one but Australia already agreed to supply two engines, two megawatt each already agreed with that they are going to install it commissioning and so forth"
Nauru's Chief Secretary, Willy Star.