The Economic Situation of the Ottoman Empire in the Tanzimat Era and the Foreign Loan Policy (1839-1876/1881)
2016
Abstract
The Era of Tanzimat continued for 37 years and in it's second half the policy of contracting foreign loans became the most prominent. The interventionism was a part of this policy, because the Western Powers were aware of the fact that the collapse of the Ottoman Empire would lead to rupture of the balance of power in Europe and therefore they aimed to prevent such a case.
The first tool which facilitated the penetration of western capital to the Sultanate were first banking houses. This article deals with the economic development of the Ottoman Empire in the era of Tanzimat and the attention is paid to the birth of first banks, to the problem of foreign loans and as well to the increase of the foreign debt in the period of 1839-1876/1881.