Nauru's government has been toppled, with the president, Rene Harris, and his cabinet voted out after a government minister defected to the opposition.
The speaker of the house, David Adeang, says it was the finance minister, Kinza Clodumar, who was number two in the government that crossed the floor.
Up until his defection, there was an impasse, with 9 MPs on either side of the 18-member house.
Mr Adeang says there was a clean sweep of all portfolios, except for finance.
He says the Supreme Court also validated this morning's proceedings.
"After a vote of no confidence, President Rene Harris and his cabinet was removed from office, and former President, Ludwig Scotty was re-elected the President of Nauru. He has since sworn in his new cabinet, and they are looking forward to passing the budget tomorrow at the main sitting of parliament."
Mr Adeang is now the Minister of Justice and Foreign Affairs.
He says their priority now is to pass two budgets, and sort out the refinancing of the General Electric loan, at 165 million US dollars.
Mr Harris is reported to be returning to the country later this week.
