Ottoman Empire’s External Debt History From Crimean War To Lausanne Negotiations (1854-1923)

When the outgoings of the defeats added to the total result, until mid-19th, Ottoman Empire had a financial crisis. Especially with the beginning of the Crimean War in 1854, increasing budget deficits, has initiated the process of borrowing money in the European markets of the Ottoman Empire. Lack of internal resources and external debts quashed Ottoman Empire’s financial situation. As a result of these problems, Ottoman Empire stopped outstanding. The new Turkish State, has inherited a heavy legacy of debt from the Ottoman Empire. This issue was brought up in the Lausanne negotiations and concluded as the Turkish State wanted. In this study, the problem which led Ottoman Empire to collapse and continued for nearly a century are discussed