Българският стабилизационен заем от 1928 г.
The Bulgarian Stabilization Loan of 1928

Summary/Abstract: After the First World War Bulgaria passed through a grave economic and financial crisis, expressed in a considerable drop in production and decline in commerce, a very high rate of inflation and rapid devaluation of the national currency. If the Bulgarian economy needed six or seven years to reach and exceed the pre-war level, in the sphere of state finance owing to the considerable reparation payments, the situation continued to be unstable and critical. It was necessary to seek financial funds abroad for the restoration of the currency. This proved to be possible only with the aid of the League of Nations. After the successful issue of the Refugees’ Loan under the guarantee of the League of Nation, in 1927 the Bulgarian Government again turned to the world organization for the conclusion of a stabilization loan. Sharp contradictions and differences emerged during the negotiations lasting more than a year between the Bulgarian side, the Financial Committee at the Council of the League of Nations and the representatives of the international banks. The most serious problem was brought about by the demand of the Financial Committee for the transformation of the Bulgarian National Bank into a joint-stock company. A great barrier proved also Bulgaria’s unsettled relations with the German bank Diskonto Geselschaft, in connection with the 1914 loan. There was also considerable opposition to the stabilization loan in the Bulgarian Parliament. After mutual but difficult concession, compromises were reached on the disputed issues which made it possible in November 1928 to issue the loan. With the help of the stabilization loan the Cabinet attained part of its objectives to restore the state finances and the railway network and to overcome the damage caused by the earthquake. In this way the League of Nations supported the efforts of the Bulgarian Government to pacify the country and hence the situation in the Balkans.

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