Greece and the German Occupation Loan

by Vasilis Giavris - Lawyer and Political Scientist

"We are here to remind you that human sacrifice is our own glamorous history and that the cruelty of man is a black page in your history. We are here to remind you that you can not just claim from Greece. You also have unfulfilled debts.” *

* Resolution, presented to the German Embassy in Greece, by survivors, family members and compatriots of the victims of the German atrocities in the village of Distomo, Greece.

The German Occupation loan was obtained by means of duress by Germany from Greece in 1942. This loan is separate to, and different from, the demands for German reparation for the mass murders and destruction caused by Germany in Greece. This loan still remains outstanding.

The loan was forced on Greece by Germany during the Second World War in order to partially fund the German occupation of Greece but primarily to fund the German war machine. In today’s terms, the exact outstanding loan amount remains officially undetermined although some Greek academics value it at 8 billion Euros whilst others estimate the outstanding debt to be over 100 billion Euros. Whilst these figures will need to be carefully examined and determined by Greek officials there is no doubt that a substantial amount of money is currently owed to Greece by Germany.

The matter of the loan repayment was first raised by the Greek government with Germany in 1945-1946 and subsequently in 1953 and again in 1964. It was initially noted that repayment would take place upon the unification of Germany as Germany maintained that “it was not right that it shoulder the entire burden of reparations, that one should wait until reunification”. However no such repayment has been made. In 1995, the Greek Government officially raised this matter in writing by serving a note verbale on Germany requesting the start of negotiations between the two countries on this issue. Such talks were rejected by Germany and unfortunately, since 1995, no Greek Government has again, officially, raised this issue.

I fail to see why consecutive Greek governments refuse to raise this matter with Germany and neglect to undertake all necessary political and legal action available to have this loan repaid. If Greece is required to meet its loan obligations, some of which date back to the 1880’s, then there is no reason why the same should not apply to Germany.

As Greeks of the Diaspora the repayment of the German Occupation loan does not only constitute a legal requirement but also a sensitive moral issue. We must not forget that the Second World War and the German occupation of Greece was the primary cause of the mass Greek migration that took place in the 1950’s, 60’s and 70’s and which resulted in millions of Greeks being “forced” to abandon their homeland and their families in search of employment and a better life in the United States, Australia and Europe. The German occupation of Greece is not only a historical event but also a political reality that the Diaspora Greeks are reminded of on a daily basis.

Greece must not abandon its demands and must insist that Germany honors its international legal and moral obligations.