Mallorca companies want government loans extended

In the Balearic Islands, some 23,000 companies have subscribed Spanish government loans which have been made available due to the pandemic. These are ICO credits, ICO referring to the Instituto de Crédito Oficial.

The President of the Federation of Small Businesses pimem, Jordi Mora, explains that 18,900 ICO loans have been arranged in the Balearic Islands. In addition to these, some 4,000 have been concluded with financial entities. Mora is among those now asking for grace periods and a refund extension.

He is assisted by the technical director of the Fundació Impulsa, Antoni Riera. He advocates extend grace periods. The current situation is marked by an increase in all production costs, while companies have not yet fully resumed their activity. It is important that there is “a climate of calm, so that companies have no more problems”.

At the end of this month, and according to the terms of the loan agreements, the companies should start making repayments. But Mora insists that “with war and economic recovery affected by the rising energy pricesit is practically impossible to return ICOs”.

The Confederation of Balearic Business Associations is of the opinion that, given the current circumstances and the uncertainties for the recovery, it is “essential” that there is an extension.

In Palma last week, the minister for industry, trade and tourism, Reyes Maroto, suggested that the wardrobe will approve the extension at the meeting on Tuesday.