Nauru's caretaker Government has dissolved Parliament and called elections for next Saturday, the 19th June - the second poll on the island in less than two months.
It comes after Parliament failed to elect officeholders following early elections in April, despite 14 sittings in the past seven weeks.
The caretaker President, Marcus Stephen, says he's been advised that his government no longer has the legal means to pay its way.
He says the country cannot function without the legal authority for Government to fund essential needs.
Mr Stephen says the potential consequences for the economy, the people, Nauru's social stability and its international standing could be severe and this is why he's announced new elections.
He attacks the Opposition for its lack of willingness to compromise, saying three of his ministers had offered to give up their portfolios, but this was ignored by the other side of the House.
Mr Stephen says the Opposition has adopted an all or nothing position and has no intention of forming a coalition of any kind.