French Polynesia's assembly president, Oscar Temaru, has suggested that the government resign as it appears unable to get a majority to pass the budget.
Speaking on local television, Mr Temaru reacted to President Gaston Tong Sang's announcement that he turned down a French loan because he cannot guarantee to pass the budget, which was one of the conditions set by Paris.
Mr Temaru says if he was in Mr Tong Sang's situation and had lost his majority, he would resign.
Mr Tong Sang says because of the loan terms imposed by France, he has secured a loan for this year elsewhere, but may consider taking up the French offer next year .
Mr Temaru has not ruled out that he and his supporters will make good on their threat to lodge a no confidence motion.
This comes as France is to finalise electoral reforms which will require a three fifths majority to oust a government.