Apart from the best part of 100'000 people being out of work, it was revealed yesterday that a total of 508 business and families were forced to either declare themselves insolvent agree special payment terms with their banks and creditors. The number represents a 26 percent increase in comparison to the 402 entities which ran into financial problems during 2010.
According to the Balearics Commercial Courts, the main reasons for business and families turning to them for help was because of the financial uncertainty which hung over last year and with an ever increasing number of families not being able to make it to the end of the month and, for example meet their credit or mortgage payments.
For the business sector, in many cases it was a lack of revenue which prevented them from balancing their books and pay their suppliers and even staff in some extreme cases.
However, the judiciary has ruled out setting up a third Commercial Court in the Balearics in order to handle a greater number of cases over the course of this year.
Lack of funds
Apparently, there is not enough funding to open up another court despite the two current courts being overwhelmed with cases.