Martinique territorial authority debt nears one billion euros

The debt of the Collectivité territoriale de Martinique (CTM) is approaching one billion euros, having increased by approximately 28% between 2021 and 2024 to reach 977 million euros. Projections suggest the one-billion-euro threshold may be crossed in 2025.

Financial analysis indicates that while operating expenses have not experienced uncontrolled growth—with some management and payroll costs growing slower than inflation—the territory has maintained high investment levels through increased borrowing and the use of working capital. This strategy, intended to fund structural projects and mobilize European funds, has increased financial vulnerability. Key indicators show that net cash flow (CAF nette) is expected to be negative in 2024 and 2025, while self-financing capacity has weakened significantly.

The situation is compounded by demographic challenges, including an aging population and a loss of young, active residents, which threatens future revenue. While some analysts point to the financial responsibility of the State in reducing the CTM's maneuvering room, the rising debt service and shrinking savings present a risk of a cycle where further borrowing is required simply to maintain existing investment levels.