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Chapter 1208 - 1208 200 Affecting Innocent Bystanders_3

1208: Chapter 200: Affecting Innocent Bystanders_3 1208: Chapter 200: Affecting Innocent Bystanders_3 Derris was so furious that she almost flipped the table, ending everyone’s game.

But in the end, reason prevailed.

Bullying the Moxi Duchy was fine, but offending the significant powers of the Human Race was not worth it.

The Elf Race was self-sufficient and didn’t lack any materials.

Their main goal was to suppress their neighbors; the Human nations collecting debts from the Moxi Duchy also effectively weakened them.

Having witnessed the Moxi People cut their military forces, the Elf Delegation no longer insisted on compensation and instead sought other benefits.

In this respect, the Moxi Duchy was especially generous.

Want privileges?

No problem, since most elves are homebodies anyway and wouldn’t move to live in the Moxi Duchy.

Even if a few little elves came by occasionally, they were just innocent children.

Relying on them to do evil and wreak havoc in the Moxi Duchy was completely unrealistic.

Exempting trade from tariffs was also feasible; the Elf Race wasn’t an industrial nation, so opening the market wasn’t a threat.

The most famous items like Magic Equipment and Water of Life were in high demand in the Human world.

If not for fear of exposure, King George would even say: Just come and dump your goods here, open wide for purchases!

Even if they weren’t used directly, selling them to other countries could turn a big profit.

This led to victory after victory at the negotiation table, yet Derris felt no sense of achievement.

The Moxi People’s cooperation left her with no outlet for her anger.

In contrast, the debt restructuring negotiations on the other side were much more heated.

Representatives not only battled verbally with those from the Moxi Duchy but also had endless disputes within their own delegation.

The factions favoring loans and those favoring bonds constantly argued.

Each vying for the limited annual payment capacity, none gave way to the other.

The loan faction believed: prioritize repaying the principal, and as for the interest, it can be settled in a second round after all the principal is paid off.

Which implied that the interest paid initially could be considered part of the principal, repaid only after settling all the principal debts.

Wait and see!

Naturally, the bond faction wouldn’t agree.

Interest was interest; how could it be considered principal?

Even if the payment capacity was insufficient, it had to be paid proportionately.

Let everyone lose together instead of letting them bear the loss alone.

With more people involved, numerous strange repayment theories also surfaced.

The overall principle was one: safeguard one’s own interests.

The Moxi People’s proposal for debt relief was tacitly ignored by everyone.

Delaying payment was acceptable, but debt forgiveness wasn’t.

Of course, no one was now taking care of subsequent interest payments.

Including the Near East Development Bank a new creditor, the Moxi Duchy’s nominal foreign debt soared to 438 million Gold Coins.

Even calculating at an 8% annual interest rate, the yearly interest exceeded thirty-five million Gold Coins, far above their fiscal revenue.

When this figure was calculated, everyone was stunned.

A duchy could accrue so much debt in such a short time, setting a new record for Human debt!

After confirming this with the Moxi Duchy’s financial expenditures over recent years, no one could argue; they had indeed spent so much.

Even more so, the Moxi Duchy’s fiscal spending was even higher than the total exposed debt.

According to the Moxi Government’s explanation: they had internal debts.

After the shock, everyone looked at George differently.

Owing so much debt yet still able to sleep and eat well, it was not an ordinary mindset.

Chancellor Helcheg’s name also resounded across the continent overnight.

Under his leadership, the Moxi Government could accrue so much debt before the bubble burst—a truly capable official!

Any lesser mastery of muddling through wouldn’t have kept them papering over one wall with another, covering the government’s huge fiscal deficit.

Even though it was a financial explosion, it was due to external factors.

Had there been no conflict with the Elf Race causing outside worries about the Moxi Duchy’s security, the cycle of borrowing new debts to repay old ones could have continued.

The massive external debt of 438 million forced all creditors to come and negotiate.

If the snowball grew any larger, they might have to rely on debt to kidnap the entire continent.

Brokerages are not easy to earn; as a later creditor, the Near East Development Bank also involuntarily got its name out.

The name “big sucker” rang out across the continent.

If it were in a previous era, such a massive loan explosion would be bound for a run crisis.

But the present circumstances were special, the Near East Development Bank’s capital cost was nearly zero.

Even though the Moxi Duchy could stretch the payback period longer, they could eventually repay the loan.

The bank’s loss was only time.

“Count Powell, I didn’t expect Marshal Hudson and King George’s relationship to be so deep, knowing full well there was fiscal trouble in the Moxi Duchy yet still daring to issue an eighty million huge loan.

Even if the Moxi Duchy went bankrupt, this major creditor did not fuss.

Instead, he called on everyone to forgive the Moxi Government’s debts.

Do you think there’s some hidden deal behind this, using the bank shareholders’ money for their own personal gains?”

The words of the elder in the purple robe furrowed Count Powell’s brow.

The Near East Development Bank had countless shareholders inside, his family included.

If there was an insider trading, it was damaging their own interests.

Although he wasn’t the family head, it didn’t affect Powell’s sense of belonging.

“Marquis Algernis, we must not speak carelessly.

The Near East Development Bank is performing well, and Marshal Hudson is competent.

Even if this loan operation fails, as long as the Moxi Duchy can repay the principal, the loss to the bank is merely some labor costs.

Considering the big picture, the Near East Development Bank successfully carved out a market in the Moxi Duchy, and this small loss is acceptable.

In business, there’s always risk.

Just like how everyone previously lent money to the Moxi Duchy, no one could have predicted their fiscal bankruptcy!”

Although defending verbally, deep down, Powell couldn’t help but harbor doubts.

But the Near East Development Bank was too profitable, and unless absolutely necessary, he couldn’t afford to fall out with Hudson.

Even if there was an insider trade, as long as it made money for the family, some minor issues could be forgiven.

Despite the myriad of banks on the continent, due to regional protectionism, they stayed confined to their own areas.

Even banks established by the four major chambers of commerce on the continent were restricted to operate only within the main shareholders’ controlled areas, facing difficulties in crossing regional boundaries.

Regional banks could only conduct simple deposit and loan operations, unable to leverage the banking’s remittance capabilities, severely compressing profit margins.

Additionally, with high customer acquisition costs and low acceptance in the Gold Ticket market, their profitability was far less than that of the Near East Development Bank.