New Zealand is reconsidering all development funding to the aid-dependent island nation of Kiribati, following a diplomatic snub from the island nation's leader, government officials said. The unusual move to review all finance to Kiribati was prompted by the abrupt cancellation of a planned meeting this month

The New Zealand government said it is reviewing its development aid programme with the Pacific nation of Kiribati after the country's president cancelled a meeting with New Zealand’s foreign minister earlier in January.

New Zealand is reviewing its aid to Kiribati after the tiny Pacific nation’s president canceled a meeting with Foreign Minister Winston Peters at short notice.

The country, which sank into a recession last year, is trying to entice highly skilled “digital nomads” to work in the island nation for up to nine months.

New Zealand will introduce looser visa rules to allow holiday makers to work remotely while visiting the country, to boost its tourism sector and economy, it said on Monday.

The visa changes allow foreigners to work remotely for their home country companies while staying in New Zealand, with added benefits such as no taxation on remote work income for stays under 90 days.