The contemporary history of Hellenic finances begins with the implementation of articles 2 and 6 of the peace preliminaries between Greece and Turkey, signed on September 18, 1897 in Constantinople; act by which, in order to guarantee the payment of the war indemnity owed by Greece to Turkey (4 million Turkish lira), without prejudice to the rights of the previous creditors, an international commission was established made up of representatives of the mediating powers (Austria -Hungary, France, Germany, England, Italy, Russia) and invested with control over the collection and use of that part of public revenue that is necessary to cover the above commitments. The constitution of the commission and the rules of its functioning were sanctioned, after the consent of the powers intervened, with the law of March 7, 1898. The revenues of the monopolies (salt, oil, matches, playing cards, cigarette paper, emery of the island of Naxos), of the rights on tobacco, stamp duties and entry rights of the port of Piraeus. In the event of insufficient income, the customs receipts of Laurium, Patras, Volo and Corfu were additionally reserved for the same use.

The financial arrangement of 1898 made it possible to reach the balance of the budget, which was then maintained until 1912, except in the financial years 1903, 1908 and 1909, which closed in deficit as a result of temporary contractions of revenues. When the new period of the Balkan wars began in 1912, which lasted with brief interruptions for a decade, the budget fell back into the deficit, which the loans only partially served to provide. The reform brought to the budget structure, by an Italian mission called in 1912 by Minister Benizélos (Venizelos) for the reorganization of public accounting, had the result of distinguishing into separate categories, starting from 1915, the actual revenues and expenses from those due to new loans and debt amortization. Meanwhile, state management had expanded as a result of the annexation of the new territories. The actual revenues, which the budget of 1912 indicated at 132 million dramas, due to the increase, above all, of the tax revenue rose progressively, until they approached, in 1920-21, to 600 million. The expenses, other than those paid for the amortization of debts, necessarily felt the influence of the events of the most important period the nation went through: from the 208 million that the budget of 1912 had recorded, they were found to rise in the year 1920- 21 to an overall increase of 1.977 million. above all, the increase in tax revenues rose progressively, until they approached 600 million in 1920-21. The expenses, other than those paid for the amortization of debts, necessarily felt the influence of the events of the most important period the nation went through: from the 208 million that the budget of 1912 had recorded, they were found to rise in the year 1920- 21 to an overall increase of 1.977 million. above all, the increase in tax revenues rose progressively, until they approached 600 million in 1920-21. The expenses, other than those paid for the amortization of debts, necessarily felt the influence of the events of the most important period the nation went through: from the 208 million that the budget of 1912 had recorded, they were found to rise in the year 1920- 21 to an overall increase of 1.977 million.

The management that took place after the end of the war, and especially after the internal pacification of the country, reflects the activity explained by the government for the restoration of finances, and for the resumption of political, economic and financial relations with the Balkan countries and with the states Europeans. In the financial year 1931-32, however, the deficit reappeared, in connection with the general difficult situation in which the Hellenic economy found itself, both due to its own factors and to the effects of the world crisis.

The revenue of the Greek budget consists mainly of indirect taxes (customs duties and consumption taxes); then there are direct taxes on rent, transfers of wealth and agricultural production, monopolies, stamp duties, etc. The biggest expenses are for public debt and for national defense.

Particular mention should be made of the expenses incurred by the Greek budget, with the help of charitable organizations abroad, for assistance to refugees following the eviction of the Greeks from Asia Minor in 1922; expenses which for the whole of 1927 were valued at over 10 million pounds. The management of these expenses, with all the provisions relating to the assistance of refugees, is entrusted to an autonomous office set up by the financial council of the League of Nations, from which Greece had asked, in February 1923, for moral and technical assistance.

As of December 31, 1931, the public debt of Greece (still under the control of the international commission established in 1898) amounted to 42,844 million dramas, of which 4,686 of floating debt and 29,504 of debt in gold.

With the decree of 12 May 1928, the privilege of issuing tickets, which since 1843 belonged to the National Bank, was transferred to a new issuing bank, the Bank of Greece. With the same provision, the drama was stabilized at 77.06 for one dollar (the pre-war parity was 5.18) and the rules were established for conferring the quality of legal money to the notes already issued by the National Bank, for circulation, the collection and renewal of tickets, as well as for the relative exchange with foreign currencies.

However, on 21 April 1932 the Bank of Greece was forced to suspend the convertibility of its notes again. As of June 30, 1932, notes in circulation amounted to 4208 million, reserves in gold and foreign currencies to 1453 million.