Funds transfer still a sticking point

North Korean nuclear envoy Kim Kye-gwan (L) waves as he leaves from Beijing airport March 22, 2007. Talks on North Korea's nuclear programme ground to a halt in Beijing on Thursday, with the North Korean and Russian envoys both leaving for the airport after four days of negotiations went nowhere. [Reuters]

Bank of China (BOC) has concerns about accepting the transfer of frozen funds from the accounts of the Democratic People's Republic of Korea (DPRK) now being held at a Macao-based bank, according to Chinese nuclear envoy Wu Dawei.

The latest round of the Six-Party Talks on denuclearizing Korean Peninsula has recessed, Wu announced yesterday, after four days of talks in which Pyongyang's top negotiator Kim Kye-gwan boycotted multilateral discussions.

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The DPRK insisted that receiving the $25 million frozen at Banco Delta Asia (BDA) was a prerequisite for returning to the meetings.

Wu said all the parties are seeking a solution to the issue and the key is who should be responsible for handling the funds transferred from BDA.

"China has a socialist market economy system and we need to consult with Bank of China on whether or not it can fulfil this responsibility," Wu told a news conference yesterday. "This is a matter that cannot be decided by the government."