1797

Two-thirds bankruptcy in France

The State being heavily burdened by debt inherited from the royal administration and the Revolution, Dominique Ramel, Minister of Finance under the Directory, decided to close the government securities market and passed a law canceling de facto two-​​thirds of the public debt. Through this « two-​​thirds bankruptcy », his intention was to « erase the consequences of past mistakes to provide the State with the means to its future. »