Palma .—The region’s economy steadily showed signs of improvement last year, but that change has not been reflected in terms of credit facilities offered by the banks.
According to business associations Pimeco and CAEB, banks need to start letting the cash flow into the local economy again to consolidate the local economy or the progress made so far could all prove to be in vain.
Both Pimeco and CAEB explained small and medium sized companies are the ones most in need of credit, in order to keep up with their expenses, and pay suppliers.
"The fact last year’s tourist season was positive helped improve the financial situation of regional businesses.
"And with predictions already showing that this year could be the same or even better, with a record number of visitors expected, hotel occupation rates looking positive along with the amount of money tourists are expected to spend, banks really need to change their strategy," concluded the reports from the two associations.
"It’s time to support the economic growth we are experiencing. Banks and financial entities should start showing their support for local businesses."