AFD presents financial review of Martinique communes

On Thursday morning, the French Development Agency (AFD) unveiled its observatory on the finances of 34 communes and three intercommunalities in Martinique. The report, based on data from the Observatory of Local Financial and Public Management (OFGL), highlights the overall financial health of these local authorities.

Balances described as generally healthy

According to Guillaume Chiron, director of the AFD in Martinique, the financial balances of the communes are "generally healthy," with debt levels remaining limited. He noted that the local authorities have the capacity to invest more in infrastructure and services.

Debt levels and repayment time

The observatory indicated that it would take the Martinique communes 5.5 years to repay their entire debt, a figure well below the 12-year alert threshold. The total debt of the communes decreased to 325 million euros by the end of 2025.

Investment and savings trends

In 2025, the communes saved more than 22 million euros, slightly less than the previous year but more than before 2022. They also invested over 126 million euros, a figure that continues to rise. However, 13 of the 34 communes showed negative net savings, compared to eight in the previous two years.

Funding sources and subsidy reliance

The communes finance 30% of their investments through their own resources, savings, and loans, allowing them to access 70% of subsidies from the European Union, the State, and the Collectivité Territoriale de Martinique (CTM). However, Chiron cautioned against relying solely on subsidies for funding.

Revenue and expenditure breakdown

Taxes and duties account for 75% of the communes' revenue, with the octroi de mer—essentially a local tax on tourism—contributing more than half of that amount. Personnel expenses make up 63% of the communes' costs, leaving operating margins "relatively limited."

Intercommunalities' performance

The three intercommunalities in Martinique, responsible for water, sanitation, and waste management, invested about 100 million euros in 2025, up from 60 million in 2024. Their debt decreased by 10 million euros to 85 million, with a debt reduction capacity of three years. Chiron summarized that the intercommunalities "have the means, as we say."