Echoes of History: The International Financial Commission in Greece
in Sovereign Default – Do We Need a Legal Procedure? (ed. Christoph Paulus, Beck, 2014), 3-19
17 Pages Posted: 21 Jul 2015
This chapter examines the rise and fall of the International Financial Commission in Greece, set against the background of Greek public finances in the 19th century. The IFC played a central role in Greek economic life up to and throughout the interwar period. It is a leading example of a quasi-receivership - a mechanism for creditors to intervene in the financial and economic affairs of a debtor country to ensure debt repayment.
The chapter sets out the events that lead to the creation of the IFC: the independence of Greece in the 1820s, the foreign policy considerations that led the major European powers to financially support Greece in its bid for independence, the first Greek default in 1828, the 1830 loan to Greece guaranteed by France, GB and Russia and early attempts by creditors to monitor debt repayment. Particular attention is paid to the establishment of the IFC, the tasks delegated to the IFC and how the IFC operated in practice.
Keywords: Public finance; Greece; 19th century; quasi-receivership; financial control; international financial commission; sovereign default
JEL Classification: N00; H63; F34
Suggested Citation: Suggested Citation