War reparation

War reparations are payments intended to cover damage or injury inflicted during a war. Generally, the term war reparations refers to money or goods changing hands, but not to the annexation of land.

Making the defeated party pay a war indemnity is a common practice with a long history.

In ancient times, the imposition of reparations on a defeated enemy was often the beginning of forcing that enemy to pay a regular tribute.

Rome imposed large indemnities on Carthage after the First and Second Punic Wars.

Some war reparations induced changes in monetary policy. For example, the French payment following the Franco-Prussian war played a major role in Germany's decision to adopt the gold standard. The 230 million silver taels in reparations imposed on defeated China after the Sino-Japanese War led Japan to a similar decision.

Following the Greco-Turkish War (1897), defeated Greece was forced to pay a large war indemnity to Turkey (£4 million). Greece, which was already in default, was compelled to permit oversight of its public finances by an international financial commission.

After the Franco-Prussian War, according to conditions of Treaty of Frankfurt (May 10, 1871), France was obliged to pay a war indemnity of 5 billion gold francs in 5 years. German troops remained in parts of France until the last installment of the indemnity was paid in September 1873, ahead of schedule.

Russians agreed to pay reparations to the Central Powers when Russia exited the war in the Treaty of Brest-Litovsk (which was repudiated by the Bolshevik government eight months later). Bulgaria paid reparations of 2.25 billion gold francs (90 million pounds) to the Entente, according to the Treaty of Neuilly.

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