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The president of the Andalucian government (Junta de Andalucia), Manuel Chaves, met with his deputies last week to announce a raft of measures designed to rescue the region’s economy, property sector and small business as a whole.

Chaves revealed that his government has finalised a plan to provide failing businesses in the autonomous community with access to a “rescue” loan of up to €10million per company to help small and medium-sized businesses fight off going into administration.

The president acknowledged the difficult market conditions in the country, however believed that Andalucia is positioned considerably well to weather the storm as his government has injected some €8.1billion across several sectors to prop it up during the downturn.

In addition to the cash support programme, the Junta is also trying to solve two problems at once by pledging to develop more subsidised housing (VPO) across the region to help beleaguered first time buyers get on the housing ladder - with the added benefit of providing construction companies with guaranteed employment.

Chaves said his government “already has a concrete proposal to offer the sector to build 2,000 of them [VPOs]”, adding that he will back the scheme with some €200million to ensure its capability and to “encourage the recruitment of some 5,000 workers”. The president stated that he believes VPO projects “give more choice to citizens and help builders maintain their activity”.

In his speech, Chavez also outlined his government’s work in promoting Andalucia as an international tourism resort and revealed that he has so far injected €350million into 106 tourism projects throughout the region, with another €800million planned to ensure adequate supplies of drinking water are maintained and natural forest areas preserved.

Full story from www.opp.org.uk

Is any property below €50,000 a cheap Spanish property? Are cheap Spanish properties only to be found at auction or as bank repossessions? How much below market value does a Spanish property need to be to be considered cheap?