France pays €130m to New Caledonia to revive post-crisis economy
The French government has paid out €130 million in additional aid to businesses and public services in New Caledonia in a bid to deal with the crisis that erupted in mid-May.
In a statement released on Wednesday, France's Ministry of the Economy announced: "This State aid will enable us to finance the operation of public services [health, electricity] and the payment of social benefits in September".
The payment is conditional "on the adoption of reforms to improve New Caledonia's economic and social model".
In addition to this latest aid package, State support for New Caledonia since the riots that ravaged the Pacific territory and destroyed its economic fabric amounts to over €400 million.
However the figure doesn't include a bailout for the archipelago's failing nickel industry.
'Conditions' for State aid
In detail, the ministry has stipulated that "if the conditions set by the State are met", France will pay over €48 million to New Caledonia in the form of repayable advances, including almost €42 million euros to finance the local health insurance system and just under €5 million to prevent the electricity system operator Enercal from defaulting on its payments.
