This money is intended to plug the holes in the local pension fund, the hospital and various social expenses…
The civil servants’ pension fund is insolvent. November’s pension payments were threatened. Disabled and dependent people were also at risk of not receiving their allowances. The situation was therefore very serious. Last April, the President of the New Caledonian Government, Louis Mapou, asked for State aid.
However, this was not blind aid. In exchange for this money, Caledonia will have to adopt reforms. The idea is to get as close as possible to a balanced budget. This concerns New Caledonia, but also its healthcare system. It’s a very generous system, like France’s, but it’s very expensive.
A committee is due to meet every month to monitor the implementation of this financial support… and the progress of the expected reforms.
This aid is just the beginning. It is likely that more will be needed in the months and years ahead…
