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🇳🇿 New Zealand /Economy & Trade

France commits more financial aid to New Caledonia

From RNZ Pacific · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources New plan
  • France announced additional financial assistance for New Caledonia after talks with a bipartisan delegation led by President Milakulo Tukumuli.
  • The package aims to address near-collapse risks affecting the pension and health systems, help close the 2026 financial year and balance the 2027 budget.
  • New Caledonia welcomed the announcement but sought clarification on how much would come as grants rather than loans.

France has offered New Caledonia a financial lifebuoy as the French Pacific territory struggles with debt, a weakened economy and mounting pressure on its pension and health systems.

Prime Minister's mission

· Sébastien LecornuLecornu referred to the team that would coordinate implementation of the assistance package.

French Prime Minister Sébastien Lecornu announced the additional assistance after a three-hour meeting with a bipartisan delegation led by New Caledonia President Milakulo Tukumuli. The package is intended to help the territory complete its 2026 financial year, which requires €11 million, and balance its 2027 budget, estimated at €50 million. The wider assistance was quoted at between €400 million and €600 million.

Lecornu said the aid would address New Caledonia's most urgent challenges, including the near-collapse of its pension scheme and medicare system. He also said consultations would coordinate implementation through a "Prime Minister's mission" team, although no date has been set for that mission.

shutdown

· Milakulo TukumuliTukumuli used the term to describe the risk posed by New Caledonia's financial situation.

Tukumuli has warned since his election in July 2026 about the territory's financial condition and the risk of a shutdown. New Caledonia's debt increased after loans from the French government during the Covid crisis and following civil unrest in May 2024. The unrest left 14 people dead, caused an estimated €2 billion in material damage, reduced gross domestic product by 13.5 percent and left more than 12,000 people unemployed.

very good news

· Virginie RuffenachNew Caledonia's Congress president welcomed the announced assistance.

New Caledonia has repeatedly asked France to convert existing loans and interest payments into non-refundable grants. Lecornu said most of the new assistance would take the form of grants, but the package also comes with assurances that the territory will carry out urgent reforms. Congress President Virginie Ruffenach called the announcement "very good news" and said it met about 90 percent of the delegation's initial €540 million request. She said the details still needed clarification, adding, "We don't want to bring more debt to New Caledonia."

We don't want to bring more debt to New Caledonia

· Virginie RuffenachRuffenach called for clarity on how much of the package would come as grants rather than loans.
About this summary

Originally published by RNZ Pacific in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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