Caledonia debt cancelled

Caledonia debt cancelled

As rancour enveloped the anti-independence movement, the French government made a surprise announcement that it would write off a USD 385 million debt, accumulated in the 1970s and 1980s by the New Caledonian government when it convinced France to underwrite the cost of nickel. This write-off will give future New Caledonian governments more latitude in charting their course. The vision of a less-encumbered government might well provide additional fuel to independence advocates.

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