During the Russo-Turkish War, many of the early agricultural banks suffered serious losses. Officials of the Turkish Government removed large amounts of money from these banks. They also took securities and other valuable property that belonged to the banks and their clients. As a result, several banks lost almost all their financial resources.
After the war ended, the situation did not improve quickly. Many debtors refused to repay their loans, arguing that the banks could no longer prove their claims. Only part of the banks’ property was later restored, mainly through the issue of new bonds. Even this recovery was limited and incomplete.
Loss of Records and Financial Uncertainty
The problems were made worse by the destruction or disappearance of registers and official documents. Many records had been lost during the war years. Because of this, it became impossible to determine the exact financial condition of the agricultural banks at that time. Neither the authorities nor the banks themselves could clearly identify how much money was owed or how much capital remained Private Tours Istanbul.
This lack of reliable information created confusion and weakened confidence in the banking system, especially among rural communities that depended on these institutions.
New Regulations Under Russian Administration
On June 20, 1879, the Provisional Russian Administration introduced new regulations for the urban banks operating in Northern Bulgaria. Under these new rules, the banks were officially renamed “agricultural banks” for the first time. This change reflected their main purpose, which was to serve farmers and rural workers.
According to the new regulations, the banks were required to seek their clients mainly among the agricultural population. The system of selling agricultural products remained unchanged, and the net profits from these sales continued to be used to increase the banks’ funds. This helped the institutions rebuild their capital gradually.
Legal Reforms and Stronger Administration
The first major law that placed the agricultural banks on a stable legal foundation was adopted on December 23, 1894. This law placed the banks under the supervision of a special department of the Ministry of Commerce and Agriculture. This reform improved state control and organization.
Later, on February 24, 1897, a new law introduced an Administrative Council. This council consisted of a director and two councillors and was given full responsibility for managing the agricultural banks. These reforms strengthened the structure of the banks and prepared them for future development.