The public finance of the Greek state was particularly burdened after 1897: foreign loans had led to bankruptcy as early as 1893,

while war indemnities to the Ottoman Empire had to be met. In 1898 the International Financial Control Commission was established which allowed for new foreign loans.

The 1900s were characterized by a relative rationalization of the economy despite predictions to the contrary. The public debt reached a total of approximately 94,000,000 drachmas, which was being paid off by annual payments of 2,000,000 drachmas each. It had been decided that the state would not contract other loans, until older ones were paid off.

Of the state budgets of the period 1899-1909 seven presented a surplus. Deficits during the last years of the period were related to a great extent to the effort to restructure the army, an essential policy with long-term repercussions, as subsequent developments were to prove.

In the 1920s the public debt increased in consequence of the great expense of war but also of their general cost. The chance to recover financially during the war was practically infeasible. There was, however, the chance for a post-war settlement, especially for allied credit, that would improve the state of public finance. These credits would reach Greece only partly, while theyx ceased definitively after 1920, due to the political change within Greece at that time. Public finance was not in a position to support the Asia Minor Campaign. The cost of the campaign progressively increased, while the contraction of foreign loans had failed despite successive attempts. Thus, an internal loan was imposed, while later the currency was cut in half, in order to cover expenses up to the autumn of 1922.