Greek Independence Loans

Era: Greek War of Independence

Period: Modern Greece

Type: Political Turning Points

Year: 1824

Date: 1824–1825

Location: London

Key Figures: Greek provisional government

Outcome:

Key Facts

Loans that left Greece in debt for decades

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Greek Independence Loans: What Happened

In 1824 and 1825, the revolutionary Greek government raised two loans on the London financial market to fund the war of independence. The first, in 1824, had a face value of 800,000 pounds, and the second, in 1825, of 2,000,000 pounds. They were arranged with the help of British philhellenes and bankers at a time of enthusiasm for the Greek cause, and investors hoped to profit from a future independent Greece. In reality, the Greeks received only a fraction of the money. The bonds were sold at a steep discount, and large sums were taken by bankers and agents in commissions, fees and advance interest. Much of what remained was wasted, lost to mismanagement or spent during the Greek civil wars. Some of the money went to ships that were ordered from Britain and America but arrived late, if at all. The loans gave the Greek cause international backing, but they also left the new state with a heavy debt, which was not fully settled until 1878, and they began Greece's long history of foreign borrowing.

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Frequently Asked Questions

What were the Greek independence loans?

The independence loans were two loans raised on the London market in 1824 and 1825, with face values of 800,000 and 2,000,000 pounds, to fund the Greek revolution.

How much money did Greece actually receive?

Greece received only a fraction of the money. The bonds were sold at a steep discount, and large sums went to bankers and agents in fees, commissions and advance interest.

How was the loan money spent?

Much of what remained was wasted or lost to mismanagement and the Greek civil wars. Some went to ships ordered from Britain and America that arrived late or never.