STAFF REPORTER CENTRAL Government is to fund the Balearic Islands to the tune of 7 million euros for the provision of 336 new homes and the refurbishment of Palma's Misericordia cultural centre, Housing Minister Beatriz Corredor said yesterday.

Of this total, 1.8 million euros is to be allocated to the refurbishment of already-existing flats or the construction of new ones, and 5 million will be spent on the reform and expansion of over 8'000 square metres of the Misericordia centre in Via Roma.

Corredor was speaking yesterday after a joint Housing Commission meeting in Palma with Balearic President Francesc Antich. The agreements between central and regional governments will mean that funding will be available for housing regeneration projects in Palma, Inca, Sineu, Alaior and Mahon.

At the same meeting, Antich and Corredor agreed to make land available for the building of 123 government subsidised homes, 54 in Inca and 69 in the Palma suburb of La Soledad.