Bulgarian Empire

Chapter 168: 28) Big Loans

There is no doubt that after the political agreement, the rest of the details of the talks, tug of war, does not need Ferdinand to bother.

Although the loan is mainly from France, it does not mean that the Bulgarian government does not need to borrow from other countries!

The late 19th century was the golden age of capitalist progress, and even when talks failed at the government level, capitalists did business as usual as long as they thought it was profitable.

After the Bulgarian-Serbian War, Bulgaria fully attracted the international community's attention. Everyone noticed with a jolt that a small country began to rise in the Balkans.

Politicians are concerned about the impact on the international situation. Capitalists are naturally concerned about profit! Anyone with a strong mind will easily notice that the Bulgarian economy has been growing rapidly in recent years!

High economic growth, naturally, is a golden period for capitalists to make money. It is a pity that this discovery has been late. Bulgaria's domestic market is limited and already saturated. There is no chance of the last entering!

But this is only for small capitalists. It is far faster to make money from finance for large consortia than in the real economy!

After assessing the risks, it becomes clear that the Bulgarian government's ability to repay the loan is still very strong.

You know that Bulgaria, to stimulate economic development, is reducing taxes, or even tax exemptions, for many industries, and once taxes return to normal levels, revenues will certainly increase sharply!

'Once there is a proper profit, the capitalists are very bold! With 10 percent profit it is guaranteed to be used everywhere; with 20 percent profit it is lively; with 50 percent profit it is desperate; with 100 percent profit it dares to trample on all earthly laws; with 300 percent profit it dares to commit any crime!' -- Karl Marx - Das Kapital

For ordinary people, perhaps the profits from issuing loans and buying bonds are just a few points. But who would be willing to come out without a few banks in their hands for the consortium?

Using other people's money to generate money is their most common tactic! In essence, taking out the risk, the cost of loans is surprisingly low, which is why capitalists are keen to engage in finance!

Otherwise, how much higher interest can be simply lending with their own money?

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In the face of high profits, there is no resistance to capital ever!

Even if diplomacy doesn't get everything it wants, loan talks continue as usual, but in much lower amounts!

In the spirit that the mosquito, no matter how small, was meat, the Bulgarian government is still very warm to all parties on behalf of the contact, trying to get every loan.

...

Time passed quickly, and by the end of 1895, through the tireless efforts of the Bulgarian government, a total of 15 loans of varying sizes were obtained, involving a total of 987 million Leva.

What is a high level of debt? The Bulgarian government is now heavily indebted, paying interest on its funds alone every year, up to more than 80 million Leva! If you add the interest on previous loans, the figure has exceeded 100 million Leva!

The French once provided 800 million Leva (the same value as the franc) and other dozens of loans, adding up to less than 200 million. We can only say that the government dominates this age of international loans!

Small loans are fine, just a little higher interest rate, not many conditions attached, and most of them are issued at once.

But the huge French money, or the 'French-Russian' joint loan, is not so easy to get!

First, the loan was not granted at once but divided into three releases. The first release of 300 million Leva, with the rest being released twice later!

Secondly, the direction of the use of the loan had to be monitored. According to the agreement, for which 300 million Leva, Bulgaria must be invested in the navy. As for how to use it, it does not worry Ferdinand. The Russians will help develop a 'proper' naval development plan!

The remaining 600 million Leva, or francs, of which half the funds must be used, must be used to buy French goods!

And the Bulgarian government must also ensure that not less than 100 million Leva is invested in the military industry!

Ferdinand has done his best to imagine the audacity of the Great Powers but still underestimated the low morality of the Great Powers!

To monitor the use of loans, it will not complain. But even the specific use of the situation is clearly specified. There is nothing to say!

If it were not for the 300 million Leva 'naval development plan', which is a twenty-year interest-free loan, he would never have asked for it!

That's right, France and Russia have planned to support Bulgaria to get the Turkish Straits, which is only nominal access. The actual control is still in the hands of the Russians!

On the other hand, the French were granted the right to travel freely without paying customs duties.

The Russian Empire was the number one investor in France abroad and the largest overseas market for French goods, so the Turkish tariffs were an eyesore.

One can see that the annual payment of tens of millions of francs in customs duties to the Turks has made the French capitalists very unhappy. They were ready to kick out this stumbling block as soon as they had the chance!

When they got this final treaty, the top Bulgarian government was outraged.

Is not Bulgaria fighting for the Russians or the French? Moreover, it is the kind of mercenaries who bring their own rations without paying the army. All the harvest can only rely on their own to grab!

It is lucky that the Bulgarian navy has no presence. Otherwise, there would be no chance of passing it at all! Once this treaty is signed, the Bulgarian navy will be reduced to one of the fleets in the hands of the Russian Empire!

However, Ferdinand was tempted to rely on Bulgaria's strength to build a navy. Without 20 or 30 years, there is no way to form a fighting force.

If you can use the power of the Russians, it may only take a few years to build a fleet. The Russians can send officers, but not all the soldiers too! If not, Bulgaria can also get a batch of naval soldiers with a set of naval logistics systems!

Ferdinand said in a serious voice: "All right, gentlemen, put away your anger! Anger can only burn your reason, and it is only through calm that you can solve the problem!

It is now clear that our strategy has been exposed, or at least the Russians have surmised it!

Either we agree to their terms and become mercenaries with the support of the Franco-Russian alliance. If we defeat the Turks, we will gain a large part of the Ottoman Empire in the Balkans.

Of course, we also have to pay a heavy economic price. Even our navy will become one of the fleets in the hands of the Russians!

Either reject the Russian conditions, from now on, and the Russian Empire parts ways, we not only can not get support, but I'm also afraid we have to face a series of Russian suppression!

All of you are the elite of Bulgaria. Now you need to choose the fate of Bulgaria, think calmly, and then tell me the answer!"