They more than meet the conditions certifying their financial strength, allowing them to regain financial autonomy and exit the Regional Liquidity Fund (FLA).

The Balearic Islands closed 2024 with a surplus of over 100 million euros, met the average payment period to suppliers, and reduced their debt by more than 500 million euros in two years.

The Balearic Islands are joining the Financial Facility and will be able to finance their debt with banks while paying lower interest rates. The Autonomous Community of the Balearic Islands (CAIB) fully meets the conditions certifying its financial strength, which allow it to regain financial autonomy and exit the Regional Liquidity Fund (FLA). The Directorate General of the Treasury, Financial Policy, and Heritage is preparing the 2026–28 multiannual borrowing plan, which will be presented in November, to combine market issuance and state financing mechanisms depending on which option generates the greatest interest savings for the region.

TDB keeps you informed. Follow us on: Facebook, Twitter and Instagram

The Balearic Islands Join the Financial Facility and Will Be Able to Finance Their Debt at Lower Interest Rates

The Balearic Islands’ entry into the Financial Facility follows the CAIB’s compliance with several indicators. Firstly, in 2024, it met the average payment period to suppliers and achieved the deficit target, closing the fiscal year with a surplus of more than 100 million euros. Likewise, the Government has reduced the region’s debt by more than 500 million euros over the past two years, enabling it to close 2024 with a debt-to-GDP ratio of 18.8%, well below the 19.5% required to enter the Financial Facility. This high level of compliance grants the Government maximum financial autonomy, allowing it, for example, to issue bonds.

Additionally, last May, the U.S. credit rating agency Standard & Poor’s upgraded the Balearic Islands’ credit rating to A- with a positive outlook, the highest since June 2011.

“Entering the Financial Facility certifies the CAIB’s financial strength, enhances its solvency to access markets, and confirms financial institutions’ confidence in lending to the CAIB thanks to its strong rating, solid budget results, and low debt levels,” explained Susana Pérez, Director General of the Treasury, Financial Policy, and Heritage.

Since the creation of the FLA in 2012, the Balearic Islands have always been part of it, with the sole exception of 2018. From now on, the CAIB will be able to access markets to finance its debt with financial institutions at very competitive interest rates, lower than those offered by the FLA.