France, Aug. 6 -- Elected by New Caledonia's Congress last Friday following the 28 June provincial elections, the new government had until now been restricted to managing day-to-day affairs.

It must work to stabilise the finances of the South Pacific territory, which is struggling with the aftermath of the May 2024 riots which left 14 people dead and caused more than €2 billion in damage.

"We are in a state of cessation of payments," government president Milakulo Tukumuli told reporters on Wednesday. "We need around 13 billion [Pacific] francs - that's €109 million - which we do not have."

Without additional financing by the end of August, Tukumuli warned that the local administration could face a "complete shutdown".

He l...