Taxi drivers owe banks so much that they are having to sell their licences

Taxi in Palma

Taxi in Palma Credit: Antekbojar CC

UNTIL recently, taxi licences have been very valuable documents often worth in excess of €250,000 and act as a taxi driver’s pension when sold on.
The PIMEM business federation in Mallorca has reported that some 50 taxi drivers on the island have put their licences up for sale according to the Asociación Sindical de Autónomos del Taxi de Mallorca as they have had to borrow from banks as business is so bad.
A statement from the Association president, Biel Moragues explained, “The volume of business has fallen alarmingly and now the affected taxi drivers cannot cope with the loans contracted with the banks. The number of people affected far exceeds fifty, although it may increase if at the end, we do not have a normal tourist season.”
According to Moragues this difficult situation has been reached “because the banks, despite the guarantees of ISBA, do not extend the length payment, hence the taxi drivers, to avoid problems and embargoes, have put their taxi licences up for sale.”
In summary, despite the credits granted by financial entities even with support at 80 per cent guaranteed by the State, the lack of custom has simply meant that those with loans don’t have funds to repay them.
Local press reports suggest that the value of a licence a year ago was around €270,000 but now, drivers are accepting €160,000 if they can find a buyer and want to liquidate as soon a possible before the price drops further.
Thank you for taking the time to read this news article “Taxi drivers owe banks so much that they are having to sell their licences”.

Written by

John Smith

Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica. Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene. Currently he is acting as Editorial Consultant for the paper helping to shape its future development. Share your story with us by emailing, by calling +34 951 38 61 61 or by messaging our Facebook page