IEOM helps New Caledonian businesses

The Institute for Overseas Issuances (IEOM) is deploying a special crisis system for New Caledonian banks to enable them to support local businesses.

In order to support the State in taking emergency measures to meet the cash flow needs of companies following the riots in Cayuse, the Supervisory Board of the Institute of Overseas Emissions (IEOM) decided to set up a dedicated crisis system to banks
New Caledonia (known as DEC-NC).

The Special Crisis Facility takes the form of a refinancing line with the following characteristics: A three-month term; 26,525,789,538 XPF, equivalent to 7% of healthy outstanding commercial credit at the Bank of New Caledonia; An interest rate of 0% with a full allocation capped at 7% of healthy outstanding credit
Banks’ companies.

The launch of this DEC-NC is a continuation of the measures to support the New Caledonian economy announced by Bruno Le Maire and Marie Guévenoux on June 5, 2024, which will help suspend bank loans to businesses and deploy zero-interest cash loans through banks, while
Insurance companies pay compensation to companies affected by recent events.

The DEC-NC will be implemented from Wednesday, June 26, 2024, with effective disbursement of funds to banks on July 2, 2024. IEOM remains attentive to economic and monetary developments and will ensure that bank liquidity is preserved in the Franc Zone Pacific region, particularly given the impact of the current crisis in New Caledonia on the need to finance economic reconstruction.