The leader of the Cook Islands Party Henry Puna denies the country is on the verge of bankruptcy.
Tahitipresse reported that the Cook Islands is facing bankruptcy but Mr Puna says his quotes in the article were taken out of context.
He says there are only major financial implications for the Cook Islands if parliament isn't held soon to approve public funding for the million dollar settlement of the failed Toa Fuel Farm scheme.
And he says over 285,000 US dollars needs to be appropriated next month for a new direct Sydney to Rarotonga Air New Zealand route, which is going to be a major boost for tourism.
"It's surely interesting when overseas media pick up something and add their own slant on it, as seems to be happening in Tahiti. I'm satisfied that certainly on the known information that we don't have a money problem here in the Cook Islands based on the comments by the Minister. And unless we have information to the contrary, we will accept the Ministers words for now."
Henry Puna, the leader of the Cook Islands Party.
No date has been set for any parliamentary sitting since a series of political upheavals has left the Prime Minister with a minority government.