The report of the Minister of Finance to the Counsel of Ministers on the situation of Roumania created by the reparation and interallied debts policy

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Monograph

Identifikator:: 102318091X

URN:: urn:nbn:de:zbw-retromon-55477

Document type:: Monograph

Title:: The report of the Minister of Finance to the Counsel of Ministers on the situation of Roumania created by the reparation and interallied debts policy

Place of publication:: Bucarest

Publisher:: Government Press

Year of publication:: 1925

Scope:: 1 Online-Ressource (115 Seiten)

Collection:: Economics Books

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nian State not only in the painful situation of not fulfilling its engagements but also of compromising completely the fruits obtained till to day with so many sacrifices. As you know very well by the late convention with the National Bank and the law passed by Parliament in June last year we endeavoured to begin our monetary consolidation and to assure the stability which we have obtained. But this operation, in order to be complete demands a long period (15-20 years) during which we must be very careful especially as regards the balance of our foreign payments. This balance will be more especially influenced by the balance of our ex ternal commerce. The results obtained already and the development of the riches of the country, make us feel certain that the future trouble would not come from our economical balance sheet but, from the financial policy of the country which might destroy or reduce the good effects of economical lile. Therefore in the negotiations which will be carried on, we must consider more especially the modes of payment during the delicate period of our mone- tary consolidation and of our rate of exchange: the more facilities our credi tors will make for us to keep up our monetary stability, and to complete as soon as possible our monetary consolidation, the more the debts well be will secured and the payments will be easier. That is why even in the interest of our engagement to pay being as sure as possible, we must obtain not only easier conditions during the first period of our consolidation, but also adjournments. Bus whatever these payments may be, the problem for us as it has been for all sums sent abroad will be : nHow are these payments to be made so, as not to cause a fall in our rate of exchange and in the equilibrium of the budget*. (The transfer question which gave rise to so much discussion over Dawe’s plan). In a normal economical si tuation with, the exchange at a normal rate, and a just payment of the allied debts, and of the reparations, Roumania by the annuities which she would have to pay in lei gold, would have nothing to fear from those transfers, unfortu nately however her situation for some time will be such that the trans forming into lei of the annuities gold and the fact that only when we are arriving at the equilibrium of her eternal economical balance max imperil her monetary stability and consolidation. We wish to add that for the same reasons we must be equally prudent in this period of monetary consolidation, also for the other engagements which we will have to make, as for instance those for fresh foreign loans: Their conclusion must be closely bound with our monetary consolidation. During these negotiations we must not forget the claim which Roumania has against her great allies, for paying the debts caused by the destruction of the oil works. At the same time as these negotiations we must demand the settling of the question of the payments to be made for the Austro-Hunga rian pre-war debts, as the agreement of Innsbruck cannot be accepted by our State in its present form. We must hope that the negotiations going on

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