Chapter 1048: Unusual Business Loans
Chapter 1028: Unusual Business Loan
Every huge loan was not something that could be finalized in a few words. In addition to the exchange of political interests, it is accompanied by a series of risk assessments and detailed negotiations.
Commercial loans are different from purely policy-oriented loans.
Pure policy loans are fully underwritten by the government, and the bank only lends money on behalf of the bank, without considering the risks and returns; commercial loans are different, even if the government provides a guarantee, it is only limited to the principal portion of the loan.
Even with the government guarantee, it is limited to the principal portion of the loan. The specific returns and risks are still assessed by the commercial banks themselves. Theoretically, as long as the bank thinks that the risks outweigh the benefits, the loan is off.
In this regard, even if it is agreed that the Government of Vienna will grant the loan, it is still unknown whether the Government of Spain will be able to obtain the loan in the end.
Of course, things are not non-negotiable. Capital seeks profit, as long as the return is high enough, the risk is no longer a problem.
Failure to get the full support of the Vienna government, but also to go and bankers bargaining, Junior naturally very disappointed.
According to past experience in dealing with bankers, Junior knows that this time not bleeding is not possible. Thinking of Spain’s current financial situation, Junior the whole person is not good.
“It’s hard to borrow money, and it’s even harder to pay it back!”
If there is no accident, after this loan arrives, the Kingdom of Spain is going to surpass the United States of America, becoming the world’s third largest debtor nation after the United States of America.
Ahead of them, naturally, were the Russians. These days it’s a skill to be able to owe huge debts, except for the Tsarist government, who else?
The Holy Roman Empire is still a creditor, although the government in Vienna is also heavily indebted.
Like a company that owes money to its upstream raw material suppliers, it also has uncollected accounts receivable from its downstream distributors.
The payment for the goods is to be included in the cost, and the receivables are to be included in the profit. Profit over cost is profit and vice versa is loss.
Although the Vienna government owes more money to others, but it can’t help but owe them more money. When you do the math, it’s still more debt than debt.
Just look at the debt of the Tsarist government next door, most of which was borrowed from here. On top of that, there are a bunch of minions who are also big receivables.
There’s no way around it, banks need to assess risk too.
Like the European countries that have declared bankruptcy, no commercial bank dares to lend them money at all, not even if someone guarantees it.
Debt collection also takes time, nearly 100% default rate, who put on the body is not willing to do ah!
In the end, we can only take a compromise program, the bank lent money to the government of Vienna, the government of Vienna and then lend money to them.
So much so that the Vienna government constantly reduce the debt, their own debt not only did not reduce, but also increased a lot.
Originally Junior also wanted to obtain this special loan. After all, by the Vienna government took over the risk, the bank gives the loan interest rate is usually very low.
Unfortunately, such a good thing is just to think about it. How could the Vienna government act as the wrongdoer without taking out enough benefits in exchange?
Besides, it’s not as if Spain couldn’t come up with collateral. Compared to the group of penniless little brother, the Spanish government is still relatively rich.
Whether it was the right to issue money, or colonies, or tariffs, or even territories, they could all be taken out as collateral.
Just because the government in Vienna wasn’t interested didn’t mean that no one else was. In the minds of many, these are quality assets. As long as they are sold to the right clients, they are all capable of reaping a full harvest.
“Oil extraction” is a matter for professionals. Bankers are the best at this, bar none.
As for the risk of default, who wants to get rich without risk? As long as the Government of Vienna is willing to provide guarantees, the risk is manageable.
……
“Did you find out?”
Junior asked.
Despite the preliminary agreement with the Vienna government on the borrowing, he had not given up on that line of Jewish capital.
You can never have too much “money”. If possible, Junior wanted to obtain as many loans as possible.
After all, the war was full of uncertainties, and no one could be sure of the final costs until the very last moment.
If there was no other way, the Ministry of War would not have proposed to recruit “French mercenaries” to fight in the war. The army had no confidence in its own soldiers, and Junior had even less confidence.
Just look at the Philippine War. Spain’s most elite troops, with absolute firepower advantage, but even a group of Japanese natives can not handle.
Although the Spanish army in the exchange ratio advantage, but compared to the performance of the French mercenaries after that, that is goods than goods to throw.
As a matter of fact, the lack of combat effectiveness of the Spanish government forces was exposed at a much more important time. If you look deeper, you can go all the way back to the last century, or rather the last century.
Only now the problem is a little more serious. Everyone knew that the Spanish Army had to be reformed, but it was a time of war, and the Spanish government simply didn’t know how to go about it.
The Spanish government doesn’t know how to go about it. Since its own army isn’t effective, it has to rely on “kryptonite” to make up for it. If you don’t prepare some money, Junior is really worried about the lack of funds again.
Minister Brad: “Time is too short, we only found out who they are on the surface. Whether or not they are secretly colluding with other forces, we are still unable to determine for the time being.
You may not believe it when I tell you, the story of these guys is a legendary novel when organized.
If we were to name it, I think it could be called The Struggle of the Jewish Capitalist, or The Resilience of the Jewish Capitalist.
According to the information we found: these guys also have a brilliant family history, their fathers dominated the largest financial consortium in the German region.
Only because they were too greedy and wanted to extend their tentacles into politics, they had covertly supported the Revolutionary Party during the Vienna Rebellion of 1848.
In the aftermath, these financial consortia were liquidated by the Vienna government. But these people reacted fast enough to see that the momentum was not right and immediately ran away.
The people ran away, but the foundation was lost. Either destroyed by the hands of the rebels, or confiscated by the Vienna government. In short, after 1848, the power of Jewish capital in Austria, suffered a severe blow.
After the storm, the lucky ones, who had escaped, were able to make a comeback with the capital that had been transferred in advance.
Only this time they were unlucky enough to be caught in the middle of the Vienna government’s anti-corruption campaign. The Jewish capitalists involved in the case were taken care of by the Vienna government, hundreds of them went to the gallows and thousands were exiled overseas.
After the matter was over, the power of Jewish capital in the Austrian financial sector was basically swept away and went into decline.
Although the Jewish syndicates were overthrown, there were always a few leaks. The people who are in contact with us now are the descendants of those who escaped the net, and are now being pushed out into the open to become the talking heads.
So far, they’ve only been found to be related to Jewish capital in the German region. Originally, the connection between them and the Austrian Jewish capital was very close, and the practices of the Vienna government have harmed their interests.
Driven by their interests, these people have always been the most opposed to the rebuilding of Shinra. It was only the back arm that couldn’t be bent, so they could only accept the reality.
After the establishment of the Holy Roman Empire, in order to avoid being liquidated, these Jewish capitals also tightened up a lot.
On the one hand, they minimized their presence as much as possible; on the other hand, they strengthened the establishment of contacts and made efforts to make friends with the powerful and wealthy.
It’s just that I don’t know why, but it suddenly came to us.”
Knowing full well that the Vienna government’s strict financial control was not suitable for playing with capital speculation. The fact that Jewish capital still didn’t run away, but instead stayed in the Holy Roman Empire, could already explain a lot.
Perhaps to the outside world, Jewish capital is one family, in fact, the competition between Jewish capital is equally fierce.
“Today you pit me, tomorrow I pit you,” is the norm of capital operation.
The so-called brotherhood of man exists only between ordinary people. Capital is the same all over the world, and its essence is profit.
The market is not infinite, and no one welcomes competitors into it. It’s easy to leave the Holy Roman Empire, but a change of scenery doesn’t mean good times.
The anti-Semitic movement is no joke, and an outsider without connections is a fat sheep brought to your door. Using fat sheep to test the will of the wolf, that is simply ……
In comparison, the Holy Roman Empire is doing quite well. Although the government was more lenient, the government of Vienna abided by the rules ah!
Within the rules, although it is difficult to obtain windfall profits, but the victory is safe. No need to worry about waking up and being clicked.
For the general Jewish population, the impact was even less. Aside from the fact that education was tightly regulated and there were no yeshivas, so they had to go to public schools, the stable social environment was already their favorite.
But compared to the upheaval, these minor imperfections were not uncompromisable. After all, the average Jewish citizen, who had to hustle for three meals a day every day, had no time to care that much.
In this context, although in recent years, the influx of Jewish immigrants into the Holy Roman Empire is large, but the concept of the Jewish people is gradually diluted.
The great integration of nationalities is in the interest of the common people, but it hurts the interests of Jewish capital.
Without these ordinary people as a cover, they are a bright light in the dark night, the brightest pups wherever they go.
Forced to do so, many of the Jewish capitals in the Austrian regions do not present themselves as Jews and play subterfuge.
So much so that, on the surface, Austrian Jewish capital has indeed fallen out of favor and is now dependent on the Jewish consortiums in North Germany for its survival.
There was not much to find out, but what was on the bright side gave Bourjunior a headache.
Politics is brutal. Based on past experience, Junior knew that the simpler the background, the bigger the problem behind it proved to be.
A few Jewish capitalists who had suffered social beatings, if there was no one to back them up, why would they dare to take this kind of high-risk loan?
“If we agree to their conditions, when will we be able to release the loan at the earliest?”
It doesn’t matter if you don’t know who’s behind it, real money can’t fool anyone anyway. As long as he could get the loan in his hands, Junior didn’t care who was manipulating behind the scenes.
“Calculating”, too, was based on strength. If it is just a few powerful people, Junior doesn’t mind letting them know what social cruelty is.
Minister Brad: “These people promised to start releasing money within a month after signing the contract and releasing it to the public.
They also made a condition that they would send someone to supervise the use of the money. To ensure that the funds are not misappropriated, they release the money once a week.
The first batch of loans will be one million divine guilders, and after that, depending on the actual situation, the amount of money to be released each week will be determined.”
“There’s a problem!”
This was Junior’s first reaction. Although lending money in batches was an international practice, lending money once a week would be too frequent.
After wandering around the chamber for a few steps, Junior slowly said, “Promise them, but the first batch of disbursements cannot be one million divine guilders.
According to international practice, the first batch of loan disbursement should not be less than ten percent of the total loan amount. And the disbursement time, it can’t be a month, it has to be within a week.”
……
(End of chapter)