3 May 2011

French Polynesia gets US$62m loan from France

1:05 pm on 3 May 2011

France has agreed to lend French Polynesia 62 million US dollars as the territory is short of funds amid a prolonged economic crisis.

The deal was announced in Paris by the overseas territories minister, Marie-Luce Penchard, and the French Polynesian president, Oscar Temaru.

Mrs Penchard says 37 million will be released before the end of the month if French Polynesia meets the lending criteria of the French Development Agency.

Mr Temaru says the funds will be used to relaunch the economy.

The loan was negotiated by his predecessor, Gaston Tong Sang, but he turned it down after rejecting its terms