3 Oct 2010

Germany finally pays off its World War I debt

8:13 pm on 3 October 2010

Germany is finally paying off World War I reparations, with a payment of around $US96 million drawing the debt to a close.

After World War I the victors imposed crippling reparations.

The BBC reports the aim was to keep Germany weak, but many historians believe the humiliation helped to propel Hitler to power.

Payments were suspended in the 1930s and 40s.

But a new agreement in 1953, the London Treaty, agreed to suspend many payments until Germany was unified.

By the time the country was reunified, in 1990, policymakers decided to write off most of the original sum.