Staff Reporter

THE amount of rental bad debts in the Balearics grew by 13.58 percent last year to reach an average of 9'802 euros, Central Government reported yesterday.

The findings mean that the Islands are now the region with the third highest debts in this sector in the country, superseded only by Madrid and Murcia.

Across the country, rental bad debts rose by 16.81 percent last year in comparison with 2009 to reach an average of 7'700 euros.
The figures emerged from a Central Government register (FIM) on bad debts, which is compiled on both private individuals and companies.
The register records not just how much rent is in arrears across the country, but also details of evictions and is allowed by law to include those who clock up rental bad debts from the first day of their failure to pay.

The FIM said that regions where rental bad debts climbed the most were Madrid where they went up by 23.84 percent in comparison with 2009; in Andalucia (21.37%); Valencia (19.38%) and Catalonia (17.65%).

At the other end of the scale, bad debt in the rental sector had increased the least last year in Cantabria (2.43%); the Canary Islands (2.53%); La Rioja (2.8%); Navarre (3.61%) and Asturias (3.7%).

The average national rental bad debt figure between 31st December 2009, and the same date in 2010 stood at 7'771 euros but there were enormous differences. The average in Madrid was 16'266 euros but only 2'564 in Castilla y Leon.