Ottoman Empire experienced financial problems, which had started in the mid of 16th century and deepened in 17th and 18th centuries and caused the collapse of the empire in 19th century. Ottoman State, in order to get out of the financial dilemma it was experiencing, firstly pursued domestic borrowing and then the foreign borrowing.
However, the domestic borrowings, obtained with high interest rates and consecutive the foreign borrowings, could not afford the financial amelioration that was expected by the Ottoman Empire. The foreign borrowings that were obtained for closing the budget deficit had had an adverse effect and increased the budget deficit instead of closing it. The high interest rates and the foreign loans that were obtained extremely under the values
indicated in loan agreements had not resulted in the expected revenues. Ottoman Empire, due to the foreign loan burden and unavoidable budget deficits in 19th century, had become a good market for Europe. The Western countries, while having voice in Ottoman finance (treasury) due to the foreign loans that they had provided, had caused revenue to the savers in their countries with the profit they had gained. The period between 1854 and 1876, related with the foreign loans that the Ottoman Empire had obtained in order to get out of the financial crisis in 19th century, is defined as the first borrowing period. In the first section of the study the reasons, development and consequences of the foreign borrowings, obtained in this period by the Ottoman Empire; and in the second section; the budget applications of the Ottoman Empire between 1854 and 1876 and the place of borrowings in the budgets are examined.