The Ottoman State has spent the last two hundred years of modernization; Production was unable to meet consumption, and by constantly losing land, the cost of war and compensation became unbearable and could not repay its foreign debt since 1854. The first external debt was received in 1854 due to the Crimean War. In 1874, 23 separate foreign debt received 239 million pounds, but only 127 million pounds were received by the government. Until 1865, the annual repayment of foreign debts could only be made with new foreign debts. The main reason for this result was that external debt was allocated to current expenditures instead of using borrowings in production areas. Although budget revenues were £ 25 million by 1875, compulsory external debt was £ 12 million and floating loans were £ 17 million. In other words, the income earned by the Ottoman Empire in 1875 was insufficient to repay its debts that year and could not be paid £ 5 million. However, it is not possible for the government to allocate all its revenues to debts and to pay current expenditures for the survival of the state. In short, the Ottoman state has collapsed financially and declared a morotorium.
Borrowing, Foreign Debt, Morotorium, Interest.
|Author :||Ali BİRVURAL|
|Number of pages:||115-122|