Chapter 1028： Abnormal commercial loan (1/2)

Every huge loan cannot be finalized in a few words. In addition to the exchange of political interests, it was accompanied by a series of risk assessments and detailed negotiations.

Commercial loans are not the same as pure policy loans.

Pure policy loans are fully covered by the government, and banks only lend money on their behalf, without considering risks and benefits. Commercial loans are different. Even if the government provides guarantees, they are limited to the principal part.

Regarding the specific benefits and risks, commercial banks still have to send their own personnel to make assessments. In theory, as long as the bank believes that the risks outweigh the benefits, the loan will fall through.

From this perspective, even if the Vienna government agrees to grant this loan, it is still unknown whether the Spanish government will finally get the loan.

Of course, things are not non-negotiable. Capital pursues profit, as long as the return is high enough, risk is no longer a problem.

He was not able to get the full support of the Vienna government, and he had to bargain with the bankers, so Junol was naturally very disappointed.

Based on his previous experience with bankers, Junior knew that this time it would be impossible to not bleed. Thinking of Spain’s current financial situation, Junior is in a bad shape.

”It's hard to borrow money, and it's even harder to pay back!”

If nothing else, after the loan is obtained, the Kingdom of Spain will surpass the Confederate States of America and become the world's third largest debtor country after the United States of America.

The Russians are naturally ahead of them. Being able to owe huge debts these years is also a kind of ability, except for the tsarist government who is it?

Although the Vienna government also carried huge debts, the Holy Roman Empire was still a creditor.

Just like a company, it owes the upstream raw material suppliers the payment, and the downstream dealers' accounts receivable have not been collected.

Payments must be included in costs, and accounts receivable must be included in profits. Profit exceeds cost is profit, otherwise it is loss.

Although the Vienna government owes a lot of money to others, there are more people who can't stand to owe them money. After a comprehensive calculation, the debt is still greater than the debt.

Just look at the debts of the tsarist government next door, and most of them are borrowed from here. In addition, there are a bunch of younger brothers who are also big accounts receivable.

There is no way, banks also need to assess risks.

Like European countries that have declared bankruptcy, no commercial bank dared to lend them money at all, and no guarantee would work.

Debt collection also takes time, with a default rate of almost 100%, and no one is willing to do it!

In the end, only a compromise can be adopted. The bank lends money to the Vienna government, and the Vienna government lends money to them.

As a result, the Vienna government, which has continuously reduced its debt holdings, has not only not reduced its own debt, but has increased a lot.

Originally, Junior also wanted to obtain this special loan. After all, the Vienna government has taken over the risk, and the loan interest given by the bank is usually very low.

It's a pity that this is a good thing to think about. How could the Vienna government act as a take advantage if it did not come up with enough benefits in exchange?

Besides, Spain is not unable to provide collateral. Compared with the poor and white boys, the Spanish government is relatively wealthy.

Whether it is the right to issue money, colonies, tariffs, or even territories, they can all be mortgaged.

The fact that the Vienna government is not interested does not mean that no one is interested. In the eyes of many people, these are high-quality assets. As long as it is sold to the right customers, it will be full of rewards.

”Oil pressing” is still suitable for professionals. In this regard, bankers are definitely the most professional, not one of them.

As for the risk of default, how can people who want to make a fortune do not take risks? As long as the Vienna government is willing to guarantee, the risk will be within control.

...

”Have you checked it out?”

Junior asked.

Although he reached a preliminary agreement with the Vienna government on the issue of borrowing, he still did not abandon the line of Jewish capital.

”Money” is never too much. If possible, Junior still wants to get as many loans as possible.

After all, war is full of uncertainty, and no one can be sure of the final cost until the last moment.

If it were not really impossible, the War Department would not have proposed to recruit ”French mercenaries” for combat. The military has no confidence in their own soldiers, and Junior is even less confident.

Just look at the Philippine war. Spain's most elite troops also have absolute firepower advantages, and even a group of Japanese natives can't handle it.

Although the Spanish army has an advantage in the exchange ratio, the performance of the French mercenaries after the comparison is that they can compare goods.

In fact, the problem of insufficient combat effectiveness of the Spanish government forces was exposed at a more important time. If you look deeply, you can go all the way back to the last century, or the last century.

It's just that the problem is more serious now. Everyone knows that the Spanish Army must carry out reforms, but now is the time of war, and the Spanish government does not know how to proceed.

Since our own army is not strong, it can only be made up for by ”krypton gold”. Not ready for some money, Junior is really worried about the lack of funds again.

Minister Brad: ”The time was too hasty, we just found out their identities on the surface. Whether they are secretly colluding with other forces is still uncertain.

You may not believe it. The story of these guys is a legendary novel.

If you want to name it, I think it could be called ”Struggle of Jewish Capitalists” or ”Resilience of Jewish Capitalists”.