In good spirits
07 Jan '13 18:28Originally posted by johnnylongwoodyLater on, during his governments (1910-1915, 1917-1920, 1928-1032), Eleftherios Venizelos routinely relied on foreign borrowing. From 1923 to 1932 the successive loans increased its huge public debt and the balance of payments remained negative despite the government efforts.
There's a lot in what you say.
Unfortunately there are very few LEADERS around if any at all
in Europe today.
I have to say I myself was shocked when the idea was put foeward
that there should be a German representative stationed in Greece to
ensure that they were following the bailout plan.
Is it any wonder the Greek people had visions of 1943.
In 1929 emerged world economic crisis after the stock market crash in New York. The crisis has had direct consequences on the economy of Greece. The exports of tobacco, which was substituted for raisins main export product, decreased dramatically because of the German recession. In 1928 the country had reverted to the “gold standard” in order to attract foreign investment capital, but in 1932 the devaluation of the pound and the collapse of the global markets forced Greece to leave it. England, at the same time, by the International Audit and Financial Committee of the League of Nations, intervened in the Greek affairs in an attempt to secure the debt to British bankers. In order to sustain the “gold standard”, the drachma was pegged to the dollar. In September 1931, the panic triggered the deposits of 3,6 million dollars from Greek individuals to differ banks all around the dial! The government sought new loans without success. In March 1931, moreover, according to the rapporteur budget Finance Minister Professor Vervaressos, Greece owed abroad 2,8681 billion gold francs. The drachma had received tremendous pressures. The reserves had vanished. In the spring of 1932, Venizelos was forced to leave late in the “golden rule” and to devalue the drachma, and on April 18, 1932, while he was in Switzerland, he was forced to declare a default. On May Day of 1932 he announced in the Greek Parliament the bankruptcy of Greece and he stopped paying the external debt.
From 1932 to 1936, the political life in Greece was characterized by the presence of short-lived governments and military coups. The Return of King George in 1935 triggered the rise to power of Ioannis Metaxas, who established the dictatorship of August 4, 1936. Metaxas reiterated the repayment of foreign debt and received new unprofitable loans from England and Germany.
The final settlement of all prewar debts of Greece became, eventually, by Spyros Markezinis in the period 1952-1953. The final payment of those loans were completed in 1967.
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