These days, European royal families generally have little financial credibility, and the banks that lend money have little restrictive power, so it is easy for European royal families in various countries to default on their debts!
Especially if various accidents occur in the kingdom, such as the failure of a war, there will naturally be no money to pay back, and if the king dies in a court struggle, there is basically no hope of getting it back.
Because the new king will not recognize the old king's debts.
Even if nothing unexpected happens, it is often unknown whether the royal family will repay the money. Some are unwilling to repay, and some cannot afford it, but no matter what, there is a high probability that they will not repay.
Therefore, if you lend money to a European royal family, whether you can get it back depends on your character!
Once the royal family defaults on its debt, these private banks in Europe have basically nothing to do with them. Who is the king? The only sanction left is not to lend money to the royal family in the future.
However, some kingdoms will even force merchants under their rule and banks to lend them money...
As time went by, the royal family wanted to borrow money, and the interest rate was naturally very high.
But why did the Royal Bank of Datang dare to lend money to the Kingdom of Denmark at an annual interest rate of just 20%?
That’s because Datang Royal Bank doesn’t worry about them not paying it back!
In addition to the Kingdom of Denmark, the Kingdom of Spain, the Portuguese, the English and many other European kingdoms, they basically borrowed money from the Tang Dynasty.
Except for a few unlucky ones who were destroyed by the Tatars and refused to pay back the money, most of the others paid back the money honestly. It is not that no one has tried to refuse to pay back the money, but usually they will be detained by the Tang Dynasty.
The European army taught us how to be a good person. Not only do you have to pay back the money, but you also often get benefits such as several colonies and tariffs.
Otherwise, the people of the Tang Dynasty would not mind changing to another king and continuing to ask them to pay back the money!
How can I put it, as long as this place still exists, don't expect to be able to rely on the money of the Royal Bank of the Tang Dynasty, even if the king changes or even the royal family changes to a new ruler, well, except for the Tatars!
Most of the time, since Datang Royal Bank dared to lend money out, it basically didn't worry that these European kingdoms would default on their loans.
You don’t have to worry about them defaulting on their debts, and you don’t have to worry much about their solvency.
Because when borrowing money, Royal Bank generally requires collateral, and all kinds of collateral are accepted, including but not limited to territory, taxes, etc.
If the tax is accepted as collateral, the Royal Bank will also send supervisors. If it is a tariff, it will even directly set up a local customs agency to collect the tariff.
For example, Scotland, which owes a lot of debt to the Royal Bank, has mortgaged its customs duties, because the Scottish customs agency is actually managed by the Royal Bank.
The annual customs tax is first deducted from the Royal Bank's arrears, and the remainder is given to the Scottish royal family.
And in order to collect the most sufficient tariff to repay the loan, this tax rate is often set by the Royal Bank.
Then there will be a delicate balance situation where the tariff collected every year is almost enough to repay the loan!
Backed by Datang's strong strength, the Royal Bank's overseas loans were a sure-profit business. Several banks in the empire were jealous of it, and they have been trying to expand overseas business over the years.
However, compared to the Royal Bank, which has branches all over the world, the strength of other banks in the Datang Empire is still a bit inferior, and there is not much international loan business.
The Royal Bank of Denmark has also analyzed the situation in the Kingdom of Denmark. As long as there are no accidents along the way, there is basically no need to worry about their solvency, but the repayment time may be longer.
Because the Kingdom of Denmark has now begun to move to northern Africa, it is basically unlikely that they will encounter powerful enemies like the Tatars there. At most, they will only conflict with Morocco and the local indigenous people.
The state system can generally be preserved. As long as the country is not destroyed, the money can naturally be repaid slowly.
The debt risk of the Kingdom of Denmark is much lower than that of countries such as France.
There is no telling when these two countries will be destroyed by the Tatars. If the countries are ruined, there is no hope of getting their money back.
But even so, the Royal Bank will provide them with loans, especially France, which is at the forefront of the Tatar resistance. Because the banks themselves will not make these extremely risky loans, but official institutions will promote them.
, because the government needs to support them to continue fighting against the Tatars.
If it were not a loan, the government might give them free weapons for use when necessary.
Of course, giving away money for free is not a good idea, so military support will not do this. Instead, loans and the Tang government provide guarantees are often used to ensure that the bank's principal is not lost.
In the thirty-seventh year of Xuanping alone, the Royal Bank provided a loan of 500,000 Tang Yuan to the Kingdom of France. This loan was officially guaranteed to be safe, but the use was also limited. The money could only be used to purchase various types of goods from the Tang Dynasty.
Military supplies.
So in the end, Datang actually sold them a sum of ordnance, many of which were various second-hand materials sealed by the military. The actual cost was very limited.
Datang's banking industry, represented by Royal Bank, has truly gone abroad, not only opening numerous branches around the world, but also getting involved in international loans.
To a certain extent, Datang's financial industry has served as the vanguard of Datang's external expansion.
After obtaining a loan from the Royal Bank, the Kingdom of Denmark started relocating in a hurry, adhering to the principle that it was better to leave sooner rather than later.
That winter, when the snow fell heavily, thousands of Danes took the ships provided by Datang to leave Göbenhavn.
Among the thousands of people in the early stage, the army accounted for half, and most of the rest were various construction, carpenters and other workers, and some were farmers.
As the vanguard, these people will first arrive in the southern area of Morocco and then establish the first stable stronghold to welcome the large number of immigrants from the rear.
It is worth noting that there is also an ordinary passenger ship in this small fleet
Unlike the previous fleet, where every ship was filled with soldiers, workers, and farmers, this passenger ship only had a small number of passengers. It had a displacement of more than 1,800 tons, but it only carried more than 500 passengers.
That's all.
Those who can travel on the special Tang Dynasty passenger ship are naturally not ordinary people. These people are basically the dignitaries of the Kingdom of Denmark and their entourage who evacuated first.
Among them are many members of the royal family.
After setting off from Copenhagen, this fleet will go straight to the new territories in Africa. However, they will not go directly to the new territories, but will first go to the colonial port city of Banjul in the Tang Dynasty.