N Korea: Macau 'prepared to unblock frozen funds'

Macau authorities are prepared to unblock frozen North Korean funds, a US Treasury Department statement said today.

This could possibly pave the way to a breakthrough in an agreement disarming Pyongyang's nuclear programme.

North Korea has refused to move forward on a February agreement to close its main nuclear reactor in return for economic aid and political concessions until the funds were released.

Macau authorities froze them after the US blacklisted a bank in the Chinese-administered region in 2005 for allegedly helping Pyongyang launder money.

"The United States understands that the Macau authorities are prepared to unblock all North Korean-related accounts currently frozen in Banco Delta Asia," the statement said.

"The United States would support a decision by the Macau authorities to unblock the accounts in question."