Abstract:

Abstract In this study, the role of the Ottoman Bank in the state debt of the Ottoman Empire and the amount and composition of the foreign debts. The foreign trade agreements that were made by the Ottoman State had increased their capital day by day. In this period foreign investments that brought liquidity into the country were used on public debt and public infrastructure expenditures and to develop economics. On the other hand increasing military expenditures, royal expenditures, the exoenditures for the Crimean war has begun to cause budget deficits. First time foreign debt was taken in 1854, and then these processes hold on for a long time for financing budget deficit. Between 1854 and 1914 different debt agreements were signed. When the Ottoman Bank was established in 1863, authority to print money was given to this bank. This process caused to lose the freedom of national economy politics in the Ottoman Empire. The Ottoman Empire announced financial bankruptcy in 1876. The Ottoman Bank had become increasingly more effective after the establishment of the Divine Administration of Foreign Debts (Administration of Foreign Debts) 1881-1914. Keywords: Budget Deficits, Foreign Debts, Foreign Trade Agreements, Ottoman Bank.

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