Ottoman Public Debt Administration

The Administration de la Dette Publique Ottoman ( Ottoman دیون ومومیه عثمانیه اداره سی, IA düyūn -ı ʿ umūmīye - ʾ i ʿ Osmaniye Idaresi, " Ottoman public debt management ") was founded in 1881 by the seven major European powers after the Ottoman Empire in 1875 suspended its debt payments had declared bankruptcy and the state. It had taken out loans in other European countries and in debt there. The head office of debt management was in Istanbul.

Background

The Ottoman Empire joined in 1838 from a free trade agreement with the United Kingdom. This native, still traditionally manufactured goods with the UK, industrially produced and thus cheaper goods had to compete. Over time, the financial dependence increased by further capitulations from the West. 1854, the first of fifteen foreign bonds was taken. To cope with more financial crises, the government debt further. In 1875, the insolvency followed. Government securities could only be operated with half of the compound interest. Finally, through the so-called Muharram decree of December 20, 1881, the Conseil d'Administration de la Dette Publique ottoman ( düyūn -ı ʿ ʾ i ʿ umūmīye - Osmaniye meclis -i Idaresi, Board of Directors of the Ottoman public debt ') was founded.

France was associated with a 40% share of the largest creditors, followed by England with 29%, the Netherlands 7.6%, Belgium 7.2% and the German empire with 4.7%.

The debt management was fully controlled by a European consortium of banks under Anglo- French management. It managed the revenue from major taxes of the Ottoman Empire and used it to repay the debt. This was to taxes on monopolies for tobacco, salt and alcohol, taxes on fish in Istanbul, on fish and silk in Bursa, revenue from stamps and annual fees of several provinces.

In the predominantly agrarian Ottoman Empire fell so many sectors of the economy under the control of foreign financial institutions. This, and the debt repayments lost the Ottoman reformers policy space. The Ottoman Empire could no longer catch up with the economic gap with the European powers.

Today, the building of the former government debt management Gymnasium Istanbul.