Balearic Government to spend 1.2 billion euros on jumpstarting economy

PALMA
THE Balearic Government is to spend 1'204 million euros in an effort to alleviate the economic slowdown.
Of this total, 920 million euros will be spent on capital investment. A further 284 million euros will go towards paying debts owed to companies in the islands that are suffering liquidity problems.

President Francesc Antich yesterday held the first of a series of consultative meetings with representatives of the different economic and social organisations on the islands to analyse the economic situation and the slowdown in the construction sector.

After yesterday's meeting with the President, Juan Cabrera, the President of Pimem, the association that represents the small and medium-sized businesses in the Balearics, said that between 40 and 50 small companies were having “serious” liquidity problems because of the decision of the President of the Drac Group, Vicente Grande, to apply for a suspension of payments to creditors.

Cabrera said that the association was now calling for soft loans to be provided to its members, saying that, in his judgement, they were the only way to “guarantee the continuity” of small and medium-sized businesses.

Cabrera added that he had made his concern known to Antich about the fact that many small businessmen could not now invoice some larger businesses.
He said that after the decision by the Drac Group to suspend payments, the economic crisis was now affecting small and medium-sized businesses much more.