Greece pardoned Germany debt in 1953. Germany's miracle was result of debt relief
German economic miracle: thanks to debt relief?Highly indebted, without access to capital, viewed suspiciously by creditors - that was Germany in 1953. Half the country's debts were canceled 60 years ago this week - the foundation of the "economic miracle."
Debt agreement[ edit]The parties that were involved besides West Germany included Belgium, Canada, Denmark, France, Great Britain, Greece, Iran, Ireland, Italy, Liechtenstein, Luxembourg, Norway, Spain, Sweden, Switzerland, South Africa, the United States, and Yugoslavia and others. The states of the Eastern Bloc were not involved. The negotiations lasted from February 27 to August 8, 1953. [1]
The total under negotiation was 16 billion marks of debts resulting from the Treaty of Versailles of World War I which had defaulted in the 1930s, but which Germany decided to repay to restore its reputation. This money was owed to government and private banks in the U.S., France and Britain. Another 16 billion marks represented postwar loans by the U.S. Under the London Debts Agreement of 1953, the repayable amount was reduced by 50% to about 15 billion marks and stretched out over 30 years, and compared to the fast-growing German economy were of minor impact. [2] |
