Bulgarian Empire

"His Excellency the Grand Duke, this is our cabinet's strategy for dealing with the upcoming fiscal deficit!" Constantine handed over a document to Ferdinand in an uneasy mood.

After taking the information, Ferdinand read it carefully. In fact, as soon as the cabinet meeting ended, Ferdinand received the news, and he was not surprised by the result. Frankly speaking, the decision of the Cabinet is not wrong. It does not blindly pursue political achievements and ignore the actual situation.

But it does not mean that Ferdinand is willing to accept this result! As a traveler, he knows the cruelty of the next battle!

Looking at the performance of the Balkan countries in World War I: Serbia, as a fuse, was directly destroyed; Romania was beaten and swayed; Greece was confused and did not solve its own problems; Bulgaria was on the wrong team , no matter how good the performance is, it is no use!

Ferdinand knew very well that if he could not accumulate enough strength before World War I, he would inevitably become cannon fodder at that time, and the ending would be a "miserable" anyway!

The projects started in 1893 will not change, and the projects planned by the cabinet will be cut in the next three years. It is very simple to block the cabinet's resolution, Ferdinand can easily veto it, but it is troublesome to solve the fiscal deficit!

international loan? ?

no! !

With strings attached, it's enough to bring anyone into disrepute! !

So what about issuing bonds? ?

It seems feasible, the premise is that someone is willing to buy it!

right! ! As long as you issue bonds, what you can't sell is a big deal. It's a business anyway. The currency of this year is directly linked to gold, and there is no depreciation! ! Then at least the deficit of 1894 can be solved! !

"Mr. Prime Minister, haven't your cabinet thought of other solutions?? You must know that these projects are very important to the future development of Bulgaria!!" Ferdinand said with a pretense of embarrassment

Constantine was shocked, and it really came! He hesitantly said: "Your Excellency Dagong, other than that, we can only borrow from the international financial market!! But you know, the economic crisis is still going on, and the price we have to pay to find international loans is too high!! As a last resort, we can only cut some items that are not particularly important!"

After listening to Constantine's explanation, Ferdinand's expression did not change in the slightest, and he said calmly, "I know everything you said! But why didn't you consider the country? With the reputation of the government, issuing bonds at home and abroad, Even if the interest is set a little higher, we can accept it! In this case, the price we pay is just some economic benefits!!"

After listening to Ferdinand's words, Constantine's eyes lit up and then dimmed. With a wry smile, he said, "Your Excellency Dagong, I'm afraid this is very difficult to do! The funding gap of the 'Second Five-Year Plan' is too large, so it is difficult to sell so many bonds, even if we set a higher interest rate, there is no consortium to subscribe, and it can be sold. It would be good to go out 10 million!"

Ferdinand said casually: "Even so, we can solve the capital turnover in 1894, can't we? We will talk about it later. If there is really no way, we will continue to implement the current plan!!"

After thinking about it, Constantine said: "Your Excellency, in theory, these are all feasible, but we also have to consider the issue of interest! Now we have to pay more than 12 million levas of loan interest every year, If these bonds are added, then in the future, our interest expenses alone may reach 30 million leva, which is close to two layers of fiscal revenue!!”

"Oh, is it the two layers of fiscal revenue now?" Ferdinand asked rhetorically.

"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 the interest is not a problem! The premise is that you can sell it!" Ferdinand say with confidence

what a joke,

When the "Second Five-Year Plan" is completed, Bulgaria's national strength will be greatly increased, and it is not easy to transfer the crisis! !

...

Having dismissed Constantine, Ferdinand knew it was time to raise money. He has long known that the international financial market has limited interest in Bulgaria, and now there is an economic crisis, and everyone is busy! There is no need to consider it in China. Except for the big buyer Ferdinand, the others are not worth mentioning! !

Ferdinand is still thinking about how to raise money, and the cabinet government has begun to prepare for the issuance of bonds. After leaving the palace, Constantine did not delay and hurriedly convened a cabinet economic meeting.

Constantine didn't hesitate, and said the matter directly: "Gentlemen, I'm calling you here now, it's the issue of the previous fiscal deficit!! Just now I went to the palace to report the cabinet's collective resolution to the Grand Duke, but it was not approved!

And put forward a new idea, to issue bonds with the government's civil justice, and borrow money from the private sector to solve the deficit! Now our task is to determine whether it is feasible? If so, how should the bond be issued? "

After listening to Constantine's words, a new window was undoubtedly opened, and everyone fell into contemplation. In fact, the issuance of bonds has long been nothing new.

But unlike later generations, in the 19th century, the purchasing power of ordinary people was limited, and it was the consortium who really had the ability to buy. The sale of bonds can usually only be endorsed by the bank, and the agent sells to all walks of life.

Anyway, they have to be drawn by the bank, so many times, people would rather go to the bank to get a loan than to issue bonds that may not be able to be sold! !

"Your Excellency Prime Minister, there is no problem in issuing bonds in theory, but how to sell them? You must know that our funding gap is not 1,800,000,000 leva, but as high as 17,000,000,000 leva, and it may even eventually be Breaking through 200 million levs!! There are not many financial institutions in the world that can afford to eat, and there is not enough interest, I am afraid it is difficult to drive them?" Chekov asked a question

Everyone turned their expectations to Constantine in unison, hoping that he would have a good solution.

Constantine explained: "This problem, in my opinion, can be solved in batches!! Our funding gap does not happen all at once, and there is no need to issue so many bonds at one time!

It can be introduced to the market in batches and gradually. In this way, there will be more financial structures that have the strength to undertake, and we can also pay as little as possible! "