Balearic government and banks agree to fight crisis together

PALMA
THE Balearic government sat down for talks with leading local bankers yesterday to discuss how together they can stimulate the local economy and help the region's business and commercial sectors combat the recession.

Earlier last week, the small business community complained to the government that the banks were not prepared to provide any financial help and therefore forcing many local companies to seriously consider cutting their losses and either lay off staff or close. The banks' reluctance to grant mortgages has also added to the problems of the property and construction sectors. The government has been rocked by the large number of redundancies in the Balearic-based airline sector and the pending closure of a number of prestigious companies with the loss of hundreds of jobs and on Thursday, President Francesc Antich called for an emergency meeting with the local financial sector.