The SVEA loan terms: 50 million gold francs at 7.5 per cent

1925

The SVEA loan of 50 million gold francs was to be repaid over forty years at an annual interest rate of 7.5 per cent. The terms were onerous for a state with almost no export economy. It was these interest payments that Albania could not meet by 1932-33, triggering Italy's political demands. Sources vary on the SVEA convention date, giving March, April or May 1925 for different steps (bank convention, company founding, loan agreement). The 50 million figure and the 7.5 per cent rate are consistent across accounts.