Chapter 1028: Abnormal Commercial Loans
Every massive loan was something that could not be finalized in a few words. Beyond exchanges of political interests, it also came with a whole series of risk assessments and negotiations over details.
Commercial loans were different from purely policy-driven loans.
Purely policy-driven loans were fully underwritten by the government. Banks merely disbursed the funds on its behalf, with no need whatsoever to consider risks or returns. Commercial loans were different. Even if the government provided a guarantee, it covered only the principal.
As for the specific returns and risks, commercial banks still had to send people to assess them themselves. In theory, as long as a bank believed the risks outweighed the returns, the loan would fall through.
From this perspective, even if the Vienna Government agreed to issue the loan, whether the Spanish Government could ultimately obtain it remained unknown.
Of course, there was still room for negotiation. Capital chased profit; as long as the returns were high enough, risk ceased to be a problem.
Having failed to secure the Vienna Government's full support and now having to haggle with bankers, Junior was naturally deeply disappointed.
Based on his past experience dealing with bankers, Junior knew that he would have to bleed this time. Thinking of Spain's current financial condition, he felt terrible all over.
"Borrowing money is hard; paying it back is even harder!"
Barring accidents, once this loan came through, the Kingdom of Spain would surpass the Confederate States of America and become the world's third-largest debtor nation, second only to the United States of America.
Naturally, Russia stood ahead of them. Being able to rack up colossal debts was a skill in itself these days—who but the Tsarist Government could do it?
Although the Vienna Government also carried enormous debts,