Russian loan

There was several Russian loans . The first loan date of 1888. The Russian loan of June 1906 is an international loan signed by the Russia intended to restore finances after the Guerre Russo-Japanese woman (2,25 billion francs covered for half by the France).

A passion appeared for this saving, until this one is unilaterally repudiated by the Bolsheviks in 1918, thus precipitating very many households and small or large French savers in the ruin and for some, in death… These last years, the Russian State claims to have " settled the question of the loans russes" by an agreement signs in 1997 between states, France and Russia, to which the carriers of loans had not left and whose they challenge the terms. If it is true that 400 million $ (that is to say 0,8% of a debt estimated in 1996 at more than 50 billion $) was paid by Russia, it is at the French government and for its account that the sum was paid, not with the carriers, which never received anything from Russia and never final discharges of its contractual obligations gave him. In 2007 the credit thus remains entiere.

Of 1867 with 1917: “To lend to Russia, it is to lend to France”

In second half of the 19th century, France is insulated from any point of view in Europe. The tensions with its German neighbor are felt more each day. France all logically thus seeks to develop an alliance of weight on the European territory. It is Russia of the time which will become this diplomatic “life buoy”.

In 1867, the companies of Russian railroads launch to France a loan named “Nicolas” for the construction of new ways in Russia. Russia of the time then had an important need for capital, related to expensive strong investments. This loan was not the first. In 1822, the Russian State had issued in its own name a loan in France.

In 1870, France is in war against Germany. The tensions which had been accentuated between the two countries found their point of no return with the annexation of the Alsace-Lorraine in Germany. In addition to this military annexation (Treated of Frankfurt - May 1871), France was forced to pour in Germany, under the five billion, war indemnities francs gold. At the time, it was of habit to humiliate the loser. France will make in the same way after the First World War with Germany. This military defeat and the will to reconquer Alsace-Lorraine encourages the French government successive to seek the good graces of Russia. The latter is all the more receptive as their primary source of capital, Germany, was dried up. The Germans invest from now on on their territory and exports of capital are done rarer. At the time, Russia was also regarded as a country far from solvent by the authorities.

In 1882 is held the signature of tripartite alliance Germany - Austria-Hungary - Italy. France is definitively insulated in continental Europe. It must at all costs obtain an alliance with Russia to avoid any armed conflict which would be devastator for his territory. This bringing together will lead in 1892 to the signature of a military convention between Russia and France. In the event of invasion of France by Germany, Russia will have to open a face in the East.

During all the end of the 19th century, the French government will put all works about it to tie good relationships with the Russian State, but without lending important capital to Russia taken on the budget of the French State. The French State which, at the time, was to support its own economic development chose to consolidate the relations with Russia with the money of the French savers, who were thus the only ones to pay to the price of the political alliances and soldiers concluded with Russia for the benefit from all.

Russia will emit on the French territory an incalculable number of loans, either of the Government loans, or of the loans of communities, or of the loans related to the railroad companies. These loans will make it possible Russia to create tens of thousands of kilometers of line of railroad, to open the Transsibérien, to develop new older industries (Chimie) and (mines). Famous French companies invested in the satellite states of Russia, market with a future. The French money made it possible Russia to very strongly develop in a few years. Without this money, the Russian State could not have reached its technological level.

During thirty years, the French government and media will encourage the French savers to invest a total of almost a third of the French saving in Russia. A third of the French saving was placed to Russia for an amount of approximately 15 frank billion gold. Of 1887 with 1913, the clear export of capital corresponded to 3,5% of GNP of France.

“To lend to Russia, it is to lend to France! ”: this sentence is drawn from advertizing posters incentive the savers to buy Russian loans. The risks of solvency of the Russian State which had led Germany to stop any loan in Russia did not seem to sully optimism with the French governments. 1897 accentuated even the phenomenon. The rouble is attached to gold and increases this character of safety.

In addition to a massive governmental campaign to support the Russian loans, the Médias French insisted heavily on the interest to help Russia. Later, it will be learned that these same media grassement were grassement paid during several years by the Russian State which poured strong commissions to them, the paying agent of the Russian State complaining bitterly near its Minister for Finance about " the abominable venality of the Française" press; who was to him so expensive. The banks were not in remainder. During any issue of loan, the bank is remunerated via expenses which it perceives with each time an investor decides to take part in this loan. For only the Crédit Lyonnais, one estimates that 30% of the profits carried out before 1914 were it thanks to the only Russian loans. Such sums explain, mainly, the deafness of the banking institutions and their financial lack of communication and transparency.

The Russian loans guaranteed to their holder a “safety at 100%” (supported by the French State) and of the interesting performances taking into consideration financial market of the time. The emissions of the loans accelerated to slow down at the beginning of the 20th century. At the time, the saving of a French was his “life buoy” for what one did not call yet Retraite. It was thus not rare to see a family placing all her economies in Russian loans, as one would have placed them in French Government loans.

In 1918 a decree of the Bolsheviks unilaterally repudiated the integrality of these debts. More than one French million and half had invested in these loans; some, forts of the insurances of the French government, there had place all their economies, and were, of the day to the following day, ruins.

Since, the Soviet government initially, the Federation of Russia then, regarded this debt as null and not avenue, with the contempt of the principles of international law however universally recognized. The contemporary carriers are always oppose with vehemence to this position without however managing to impose the respect of the right to the successive governments of Russia.

Contemporary developments

In 1996 - 1997, the governments Russian and French negotiated, over the head of the French carriers and without the approval of the latter, an agreement under the terms of which each government was committed not more presenting to the other its credits born before 1945, and not to more support in front of the other the credits of its nationals born before 1945. This agreement was accompanied by the payment by Russia in France 400 million dollars, that is to say, according to the estimates of the carriers themselves, but also of independent observers, less than 1% of the brought up to date value of the debt, of which they estimated the amount at more than 40 billion dollars.

This way, the French government finally managed to emerge from the obligation to grant its diplomatic protection to its nationals carrying Russian loans, obligation which did not have cease to embarrass it during nearly 80 years. Of course, this agreement between states does not extinguish obviously the rights of the carriers with respect to their debtor, like confirmed it the Council of State and pointed out it Nicolas Sarkozy in a letter addressed to the carriers on March 19th, 2007. The carriers were consequently holders of a very solid credit, but entirely alone vis-a-vis Russia and thus incompetents to make it honor.

Their situation proved all the more difficult as in 1996 the government had required of the Bourse de Paris (where the loans were with dimensions without interruption since their emission is for some of them more than one hundred years) to suspend quotations temporarily while waiting for that the procedures of the distribution of the 400 million dollars poured by Russia are adopted, which was made in 2000. But the carriers still could not obtain (April 2007) the resumption of quotations on their titles, although the reason officially called upon at the time of the suspension has not existed any more for more than six years and in spite of the engagement given by the government, represented by the Secretary of State Charles Josselin, in front of the national representation, in 1997 (National Assembly on September 20th, 1997 and Sénat on December 10th, 1997); this suspension constitutes from now on the longest suspension of quotation of the history of the Bourse de Paris. It was the subject of a procedure brought by the AFPER (French Association of the Russian carriers of loans) against Euronext, the invested company of private law of the mission of public interest ensure quotations on the regulated market of the Bourse de Paris. The AFPER was déboutée in first authority, its call was pled on April 2nd, 2007 and the stop of the Court of Appeal must be published on June 5th, 2007.

The association of carriers AFPER took many actions in front of the French jurisdictions in order to recover the credit of the carriers, in particular by attempt at seizure of Russian goods located in France (goods real, artistic with tables lent by the Musée of the Hermitage of Saint-Pétersbourg, the Sedov which is the sailing ship of the world, true floating embassy of Russia, which in middle of the night had to leave precipitately and shamefully the wearing of Marseilles in spite of the official receptions envisaged has edge the following day in order to avoid the seizure…) between 2002 and 2005. Although none was crowned success, some had the merit to lead the judge to confirm the reality of the credit.

In 2005, the AFPER decided to cease its activity of harassing to concentrate, in a great discretion, on a small number of targeted activities.

Future

Certain carriers estimate that each cut of 500 gold franc (most widespread) represents a credit whose brought up to date value (June 2007) is higher than 11.000 Euro S. It acts of a preserving estimate, others, more whimsical, were presented. The government listed nearly 316.000 carriers and 9 million cuts in 1999; the average carrier thus holds 30 cuts, that is to say a credit of almost 330.000 euros on Russia. The entire amount due to the French carriers is as for him about 100 billion euros. This explains, obviously, why the carriers do not give up the file.

In 2007, the solvency of Russia is unanimously recognized. The file of the Russian loans crossed one particularly difficult period of its history, which knew much of it. This period comes from now on to a end and the credit, whose solidity and reality were obviously regularly confirmed including still very recently (March 2007), in writing, by the two candidates with the presidential elections Nicolas Sarkozy and Francois Bayrou (Jean-Marie Le Pen being already worried of the fate of the carriers in the past, and Mrs. Royal not having answered the questions of the carriers), can extremely well be presented abroad, where there exists a vast sphere of activity, in front of jurisdictions perhaps more objective than the Frenchwomen and still to date unexploited. Many people follow and deal with this file.

Franco the Russian agreement of 1996-1997 made it possible Russia to issue new loans, quoted on the stock exchange of Luxembourg. In addition the quality of the signature of the Federation of Russia is the subject of a notation by the principal credit rating agencies (such as Standard & Poors, Moody' S, or Fitch); they allot a whole a note known as " investment grade" (investment of quality) with this transmitter, making a total abstraction owing to the fact that the Federation of Russia east at fault on the totality of the Russian loans currently entered with the official list of the Bourse de Paris (of which incur it updated - August 2007 - conservativement is conservativement estimated at more US$ 90 billion), whereas the case of the selective defect of payment is however specifically envisaged by the credit rating agencies, which should consequently allot only one note SD (" Selective Default") with this transmitter in order to alert the investors on the fact that Russia does not honor its contractual engagements and is in legal risk on US$90 billion, a very significant sum have regard to the Russian budget.

The serious gray crossing currently (August 2007) by the American mortage market said " subprime" the lightness of the credit rating agencies emphasized and caused an in-depth survey, currently carried out by the Police chief Charlie Mc CREEVY in the name of the European commission. Many carriers write to him in this moment in order to draw its attention to the misleading notation allotted to the Federation of Russia by these same agencies.

See too

national Grouping of defense of the Russian dematerialized title and stockholders

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