English title: Constantin Diamandi’s Activity in Securing the Stabilization Loan for the Leu, 1927–1929
https://doi.org/10.47743/RRISXX.2025-3-3
Issue: 3/2025
Pages: 71-96
Language: Romanian
Author: Ionel DOCTORU
Author affiliation: “Alexandru Ioan Cuza” University of Iași, Romania
Abstract: The stabilization loan of the Romanian leu in 1929 represented a landmark moment in the economic evolution of interwar Romania. In a period characterized by monetary instability and severe inflation, the Romanian authorities turned to international
financial assistance in order to restore economic equilibrium and reinforce confidence
in the national currency. The main objective of this loan was to introduce a convertible
leu and to inaugurate a phase of lasting financial stability.
The initiatives undertaken by the Bucharest government, supported by the efforts of
Romania’s plenipotentiary minister in Paris, Constantin Diamandi, created the
diplomatic and institutional framework necessary for securing external credit. Although
grounded more in political considerations than in economic or financial rationale, the
stabilization loan became a genuine test for France, which sought to reaffirm its position
as a major international creditor. For Romania, this financial plan represented a vital
opportunity to regain access to international credit markets.
The involvement of political factors in the negotiation process facilitated Constantin
Diamandi’s active participation at the discussion table. While his actions succeeded in
gaining the support of certain political circles, opposition from the National Peasant
Party’s propaganda and the country’s internal economic difficulties hindered the
finalization of the project. The coming to power of Iuliu Maniu’s government and the
adoption of the “open-door” policy altered the perception of both French political and
financial circles toward Romania, compelling Diamandi to adapt his diplomatic activity
to the new economic and political realities.
Keywords: Constantin Diamandi, stabilization, loan, economic, diplomatic, currency