North Korea says nuclear deal block may be cleared

SEOUL, May 15 (Reuters) North Korea said today it may soon receive the frozen funds it demanded be returned before it would start to shut down its nuclear reactor, source of its weapons-grade plutonium.

''Currently, a process is ongoing to wire the funds in Macau's Banco Delta Asia to our bank account in a third country,'' a North Korea Foreign Ministry spokesman told the North's official KCNA news agency.

North Korea agreed to shut down its Soviet-era reactor at six-way nuclear talks in February but insisted it would not move until it received 25 million dollars in assets once frozen at the bank.

North Korea missed a mid-April deadline to begin the shutdown, leading Washington and others to demand that Pyongyang live up to promises it made at the talks with South Korea, China, Japan, Russia and the United States.

Washington said weeks ago that the money, frozen at its request due to suspected links to illicit activity by Pyongyang, had been released and was awaiting collection.

''If the money transfer has been completed, we will immediately take steps to close nuclear facilities as agreed upon under the Feb 13 deal,'' the spokesman said.

North Korea, which conducted its first nuclear test in October, has said it could begin the shutdown of its Yongbyon nuclear facility within a day of receiving the funds.

''We will also invite the UN nuclear inspectors immediately and discuss in detail further steps regarding the suspension of nuclear facilities,'' the spokesman said.

Reuters RJ DB1911