"We have agreed that they [the talks] will be prolonged for another day or two to find a solution to the financial issue," Deputy Foreign Minister Alexander Losyukov said.
Losyukov said the Bank of China had refused to transfer North Korea's $25 million from frozen accounts in the BDA Macao Bank.
The United States has unfrozen the Communist state's accounts as a precondition for Pyongyang to close down its nuclear reactor. But Washington also banned U.S. financial organizations from dealing with the BDA Macao Bank, which it suspects of laundering North Korea's money, complicating the return of the funds to Pyongyang.
"As for money transfers through banks in some other country, these banks will also want to know whether they will be subject to [U.S.] sanctions as well," Losyukov said, explaining the Bank of China's refusal.
The current round of talks, which began March 19, stalled Tuesday, when North Korea demanded confirmation that its money in a Macao bank has been released.
A negotiator from China, which is hosting the talks, also said discussions would continue.
"All the parties have agreed to continue talks for a required period of time to resolve 'technical difficulties'," Qin Gang said without elaborating on the difficulties.
