Chapter 101: National debt

"Her Majesty, this is the strategy our Cabinet has adopted to cope with the upcoming fiscal deficit!" Constantine sent a piece of information to Ferdinand in a moody mood.
I took the information, Ferdinand read it carefully. In fact, just after the cabinet meeting, Ferdinand received the news, and he was not surprised by the result. Frankly speaking, the cabinet resolution is not wrong. It does not blindly pursue political achievements, and ignores the actual situation.
But it does not mean that Ferdinand is willing to accept this result! As a traverser, he knows the cruelty of the next war!
Looking at the performance of the Balkan countries in the First World War: Serbia was directly destroyed as a fuse; Romania was beaten and swayed; Greece was so confused that its own problems were not solved; Bulgaria stood in the wrong team , No matter how good the performance is!
Jeff Ferdinand knows very well that if he can't accumulate enough power before World War I, he will inevitably have to do cannon fodder. Anyway, the ending is a "miserable" word!
项目 The projects launched in 1893 will not change, and the projects planned to be cut by the Cabinet are all in the next three years. The resolution to stop the cabinet is simple. Ferdinand can easily veto it, but solving the fiscal deficit is troublesome!
International loan? ?
No! !!
Adding light to conditions is enough to make anyone notorious! !!
Is that a bond issue? ?
Seems to work, as long as someone is willing to buy it!
Correct! !! On the issue of debt securities, it is not a big deal that you cannot sell. Anyway, it is all business. The currency of this year is directly linked to gold, and there is no devaluation! !! Then the deficit of at least 1894 can be solved! !!
"Mr. Prime Minister, haven't your cabinet thought of other ways? It is important to know that these projects are crucial to the future development of Bulgaria!" Ferdinand said in a difficult way.
Constantin was shocked, and it really came! He said rudely, "Excuse me, Dagong, besides, I can only lend to the international financial market !!! But you know, the economic crisis is still going on, and the price we have to pay to find an international loan is too great !! As a last resort, we can only reduce some items that are not particularly important! "
After listening to Constantine's explanation, Ferdinand's face did not change at all, and he calmly said, "I know all these things! But why haven't you considered China? With the government's reputation, issuing bonds at home and abroad, Even if the interest rate is set higher, we can accept it! In this case, the price we pay is only some economic benefits !!! "
After listening to Ferdinand's words, Constantine's eyes brightened, and then faded again. With a bitter smile, "My Excellency, I am afraid it will be difficult to do! The fund gap of the" Twenty-Five Plan "is too large, so I am afraid that it will be difficult to sell so many bonds, even if we set a higher interest rate, we can sell without a consortium subscription Going out for ten million is good! "
Phoebe Ferdinand said casually: "Even so, we can solve the capital turnover in 1894, don't we? I will talk about it later, if there is really no way, then follow the current plan!"
Constantine thought for a while and said, "Her Grand Duke, these are theoretically feasible, but we also have to consider the issue of interest! Now we pay more than 12 million leva interest on loans every year, If these bonds are added together, our future interest expenses alone may be as high as 30 million levs, which are close to two levels of fiscal revenue !!! "
"Oh, are two levels of fiscal revenue right now?" Ferdinand asked back
"Yes!" Constantine
"So easy to handle! Don't forget that our economic growth rate is not slow, and the fiscal revenue will definitely be much higher than it is now! Then interest is not a problem! Provided that you can sell it!" Ferdinand Say with confidence
What a joke, when the "two-five plan" is completed, Bulgaria's national strength will surely increase, and it is not easy to transfer the crisis! !!
Uh ...
I sent Constantine, and Ferdinand knew it was time to raise money. He has known for a long time that international financial markets have limited interest in Bulgaria, and now that the economic crisis has just begun, everyone is busy! Not to mention domestic, except for Ferdinand, a big buyer, the others are not worth mentioning! !!
Jeff Ferdinand is still thinking about how to raise money, and the cabinet government has begun preparing for issuing bonds. After leaving the palace, Constantine held the cabinet economic meeting without delay.
Constantine didn't hesitate, and straightforwardly stated the matter: "Mr. You ~ EbookFREE.me ~ Now calling you, it is still the problem of the previous fiscal deficit !!! I just went to the palace to report to the Grand Duke the collective resolution of the cabinet, But it was not approved!
Also proposed a new idea, issue bonds with the government's morality, borrow money from the people to solve the deficit! Now our task is to determine whether it is feasible? If so, how should bonds be issued? "
After hearing Constantine's words, a new window was undoubtedly opened, and everyone was lost in thought. In fact, issuing bonds is nothing new.
But unlike the later generations, in the 19th century, the purchasing power of ordinary people was limited, and it was the consortium that really could afford it. The sales of debt securities can usually only be endorsed by banks and sold to all sectors of society.
Anyway, they have to be drawn by the bank, so many times, people would rather go to bank loans rather than issue bonds that may not be sold! !!
"Sir Prime Minister, there is no theoretical problem in issuing bonds, but how do we sell them? We need to know that our funding gap is not 180 million levs, but 1.7 billion levs. It may even end up Breaking through 200 million levs !!! There are few financial institutions in the world that can afford to eat, there are not enough benefits, I am afraid that it is difficult to drive them? "Chekov asked
Everyone has set his sights on Constantine, expecting him to have a good way.
Constantine explained: "This problem, in my opinion, can be solved in batches !! Our funding gap does not happen all at once, and we do not need to issue so many bonds at one time!
It can be done in batches and gradually introduced to the market. In this way, there will be more financial structures capable of undertaking. We can also pay as little as possible! "