The Marshall Islands Secretary of Finance, Jefferson Barton, has denied a newspaper report that the country has a cash crisis, after government halted spending from its general fund.
Mr Barton says the mid year fiscal freeze is to slow down the flow of new purchase requisitions, and to make sure the country's doesn't end up with a deficit at the end of the fiscal year.
He says spending from the general fund should be back to normal by the end of February or March and this temporary glitch is not having an affect on government operations.
"People are getting paid people are getting paid, one of the reasons why we got to do this so we don't slip into more problems but in the meantime there is no problem people are getting paid"
Meanwhile, Mr Barton says they will also make a million dollar payment on their Asian Development Bank loan.