German–Soviet Credit Agreement (1939)
The German–Soviet Credit Agreement (also referred to as the German–Soviet Trade and Credit Agreement) was an economic arrangement between the Soviet Union and Nazi Germany whereby Soviet Union received an acceptance credit of 200 million Reichsmark. over 7 years with an effective interest rate of 4.5 percent. The credit line was to be used during the next two years for purchase of capital goods (factory equipment, installations, machinery and machine tools, ships, vehicles, and other means of transport) in Germany and was to be paid off by means of Soviet material shipment from 1946 onwards. The economic agreement was the first step toward improvement in relations between the Soviet Union and Germany. The next day after the Credit Agreement, the Soviet Union went to war against Japan, in a successful four-week military campaign in the Far East. The Nazi-Soviet Pact was signed four days after the Credit Agreement. The 1939 German–Soviet Commercial Agreement renewed declined Nazi–Soviet economic relations and was adjusted and expanded with the larger German–Soviet Commercial Agreement in February 1940 and January 1941 German–Soviet Border and Commercial Agreement. All these agreements were terminated when Germany invaded the Soviet Union in June 1941, in violation of the treaties between the two countries. Soviet trade with Germany in the pre-invasion period ended up providing the Germans with many of the resources they needed for their invasion of the Soviet Union.
Read more about German–Soviet Credit Agreement (1939): Later Events and Total Trade
Other articles related to "1939, agreement":
... information Molotov–Ribbentrop Pact, Invasion of Poland (1939, Nazi–Soviet economic relations (1934–1941), German–SovietCommercial Agreement(19 ... were also raised by the Soviet invasion of Finland started at November 1939 ... Union continued economic, military and political negotiations throughout the last half of 1939 which resulted in a much larger German–SovietCommercial Agreementwas signed on February 11, 1940 ...
Famous quotes containing the words agreement and/or credit:
“No one can doubt, that the convention for the distinction of property, and for the stability of possession, is of all circumstances the most necessary to the establishment of human society, and that after the agreement for the fixing and observing of this rule, there remains little or nothing to be done towards settling a perfect harmony and concord.”
—David Hume (17111776)
“The world is a puzzling place today. All these banks sending us credit cards, with our names on them. Well, we didnt order any credit cards! We dont spend what we dont have. So we just cut them in half and throw them out, just as soon as we open them in the mail. Imagine a bank sending credit cards to two ladies over a hundred years old! What are those folks thinking?”
—Sarah Louise Delany (b. 1889)