Agreement on the first English loan

On February 9, 1824, a Greek delegation by Ioannis Orlandos and Andreas Louriotis, agreed on a loan of 800,000 pounds with the House of Loughnan. The terms of the loan were particularly unfavorable for Greece. In particular, the amount granted was set at 59% of the nominal (472,000 pounds). The interest was 5% on the nominal value, the commission was 3%, the premiums were 1.5%, and the repayment period was set at 36 years. All public property and proceeds were signed as collateral to the lenders. At the end of all this, the amount received by the revolutionary administration was a mere £298,000. Although overburdened, the loan was considered a great political success for Greece. However, it was disappointingly misused. Most of it was spent on the civil war, rather than on the fight against the Ottomans.