The Issue of Serbia’s Repayment of Debt to Russia on the Loan of 1876 (Based on Russian Diplomatic Documents)

Abstract

The article analyses Serbia’s actions regarding the repayment of its debt to Russia under the Loan Agreement of 1876. The author examines all stages of Russian-Serbian relations concerning the repayment of this debt, as well as the circumstances that impacted the postponement of payment deadlines. In 1876, during the Serbian-Turkish War, Serbia entered into a loan agreement with three Russian banks. By 1890, Serbia’s main debt obligations to Russia included debts from the loans of 1867, 1876, and a credit agreement from 1890. The question of debt repayment was connected to the improvement of Russian-Serbian relations, as Russian diplomats consistently agreed to defer payments on loans, including the one from 1876. After gaining independence, Serbia found itself in a situation where obligations related to railway construction, military preparations, and institutional reforms required additional financing. The author highlights the presence of short-term loans and a budget deficit, which Serbia was only able to overcome by 1903. The political and economic challenges faced by Serbia resulted in the country being unable to repay its debt to Russia until 1911. However, the improvement in economic conditions eventually allowed the state to enter into a loan agreement with a French banking syndicate, which enabled Serbia to fully settle its debt obligations to Russia.

Received 28 September 2024

Revised 1 November 2024

Accepted 10 December 2024

For citation: Nikiforov, D. I., 2024. The Issue of Serbia’s Repayment of Debt to Russia on the Loan of 1876 (Based on Russian Diplomatic Documents). Slavic World in the Third Millennium, 19 (3–4), pp. 28–45. https://doi.org/10.31168/2412-6446.2024.19.3-4.02