Vanuatu's Department of Lands says a total of 4,000 lease holders in Port Vila are partly to blame for the government's deficit last year.
The deficit reached two billion vatu or 21 million US dollars with the leaseholders owing a quarter of that.
A spokesman for the department of lands, Amos Kalo, says in the latest attempt to recover the outstanding amount, all lease holders with outstanding rents have been invited to discuss their arrears with land rents officials.
The department has cancelled leases on two properties over the debts and Mr Kalo says this is a wakeup call for all other lease holders to settle their outstanding rents.
The newly re-installed prime minister, Sato Kilman, says the outstanding land rents and unpaid value added tax make up the bulk of the government's deficit and he says his administration is working to resolve both issues.
