September 22nd 1908: Political independent, financial dependent

Authors:

Pages: -

Abstract:

The Bulgarian governments were facing two very important issues after The Liberation from 1878 : to accomplish The Unification of Bulgaria and to announce The Independence. The settlement of the first issue led to the war with Serbia. Attempts to proclaim The Independence had been made since 1897. At the beginning of 1908 Alexandar Malinov became the prime minister of Bulgaria. The main aim to his government was the accomplishment of The Independence. But Bulgarian Declaration of Independence on September 22nd 1908 infringed on Great Powers‘s interests and Turkey demanded financial compensations. To avoid military conflict, the Bulgarian diplomacy was forced to begin a negotiations with European banks for a loan. French banks gave their permission but with many attached conditions. Russia came into the picture at that moment. The foreign minister of Russia- Alexandar Izvolski offered a financial plan. According to this plan Russia took the dept to Turkey and Bulgaria transferred its tribute payments – 82 million levas over 75 years – to Russia. Bulgaria kept the right to pay the whole amount of its dept at once if it had such opportunity. The contract for the loan was signed with the Russian government , it was not over international control and this released Bulgaria of obligations to other European countries. Alexander Izvolski helped the Bulgarian and Turkey governments to come to an agreement and on April 6th 1909 was signed the final protocol for The Bulgarian Declaration of Independence. At this moment in Peterburg was signed the contract for a loan of 82 million levas . Russian financial plan was realized. Bulgaria increased its external debt and became financial dependent from Russia. But at the same time Bulgaria apperared on the international political stage as an independent country.

Keywords:

Unification, Independence, credit policy, “Pariba”, The Triple Entente, Triple Alliance, collective loan

Download

NA / Bulgaria / Canada / China / Cote D'Ivoire / Croatia / Europe / France / Germany / Hungary / Portugal / Russian Federation / Sweden / Turkey / Ukraine / United Kingdom / United States