4 - Foreign Creditors (May 16–May 25)

Summary

In chapter 4, Foreign creditors (May 16 - May 25) the actors deal with the problem of raising an Austrian government bond loan, while at the same time Credit Anstalt’s foreign creditors are getting involved. Conflicts begin to disappear between Austrian actors and central bankers and international creditors, and it becomes increasingly clear to the latter that the situation may well be more problematic than they imagined in the first place. On the Austrian side talks of a moratorium upsets central bankers and creditors who favor a guarantee. It’s getting increasingly difficult for the central bankers to emplot a narrative that can make sense of the situation and enable action to dodge the crisis. The fear of contagion becomes widespread, adding to the uncertainty.