Balearic government nears agreement over maximum loan

The 354 million euros, said Partido Popular regional government spokesman Rafael Bosch yesterday, forms part of the Balearic Islands' 2011-2014 financial stability plan which Central Government approved some months ago.

The sum of 354 million euros amounts to 1.3 percent of the Balearic Gross Product and is the maximum credit that Central Government will allow the region to take on.

The Balearic government gave permission for the Economy ministry and its Business Promotion department to secure the loan of 209.5 million euros and at a later date a further 144.5 million to make up the 354 million euro total.

Economy Minister had said at yesterday's government meeting that the agreement with the banks was about to be reached after months of negotiation.
Bosch said that the Balearic government was insistent on its obligation not to spend more money than it had and to bring down its public deficit.
The spokesman said that prior to the presentation of the 2012 budget to Parliament this coming Monday, the government had been scrutinising each and every one of the pubic subsidies that it would have to provide next year and was being careful to prioritise health, education and social welfare.

In 15 days, said Bosch, money will be made available to schools and other education centres for their essential needs of light, water and heating up until the end of the year.

He said that in the field of health services, moves had been made to close the old public health foundations which were responsible for the running of Son Llàtzer, Manacor and Inca hospitals and to have them integrated into the Balearic Health Service, Ib-Salut. The strategy will help centralise and minimise costs.