French Polynesia has signed an agreement with France to borrow an additional 337 million dollars to help reform the territory's social security system.
The deal was signed by French Polynesia's president Edouard Fritch at a meeting with the French prime minister Jean Castex in Paris.
Photo: Tahiti Tourism
Mr Fritch said the loan from France's Development bank will help with the difficulties at the social welfare agency CPS, which has led to taxes being raised.
He said the funds will also be used for the recovery plan launched last year to rescue companies hit by the pandemic, such as Air Tahiti Nui.
Mr Fritch said all the loans, which exceed 1 billion dollars, will be repaid from 2023.
Last year, Mr Fritch said Paris had for the first time conceded that it should compensate the CPS agency for the medical costs caused by France's nuclear weapons tests.
He said at the time that he had received a letter from Mr Castex, in which he admitted that the demand for a re-imbursement of the outlays was legitimate.