OTTOMAN’S BIG PROBLEM: FOREIGN DEBTS

OSMANLI’NIN BÜYÜK SORUNU: DIŞ BORÇLAR

Abstract

One of the important problems faced by the Ottoman Empire in its historical process was foreign debts. These debts seriously affected the economic and political stability of the empire and played a role in its collapse. The Ottoman Empire’s encounter with foreign debts is the result of a process dating back to the mid-19th century. Foreign debts arose during the modernization and military restructuring efforts of the Ottoman Empire. In the early 19th century, the empire’s economy began to weaken increasingly and financial difficulties increased. During this period, the Ottoman government applied for foreign loans to finance modernization projects and strengthen military equipment. However, these debts increased uncontrollably over time and destabilized the financial structure of the empire. Foreign debts caused the Ottoman Empire to lose its economic independence and become dependent on foreign powers. The lending states intervened in the internal affairs of the empire by putting political and economic pressure on the Ottoman government. This situation contributed to the Ottoman Empire experiencing territorial loss and internal divisions. Foreign debts are considered an important factor in the collapse of the Ottoman Empire. Failure to pay debts has led to disputes with international financial institutions and loss of credibility. This situation worsened the already weak economy of the Ottoman Empire and accelerated the collapse of the empire. This study will cover the causes and effects of foreign borrowing in the last periods of the Ottoman Empire.