This loan has been issued in 1920, as first external bond of the newly independent Polish State. The whole issue amounted to USD 19.574.500 in $50, 100, 500 and 1000 bonds and has been subscribed mainly by Poles living in the US. Originally 6% gold bond due 1940 has been converted in 1938 to 4.5% bond due 1958. Converted bonds (majority of the whole issue) have been overprinted, and new sheets of coupons have been attached. In Poland those bonds (at the holders option) were converted into 4.5% dollar bonds, exchanged for bonds of 4.5% Internal State Loan of 1937 Series A issued in Polish Zloty, or redeemed in cash paid out by the State Treasury in Polish Zloty.

Repubblica di Polonia, 7% Prestito estero en Lire Italiane, 1924, 12.500 Lire

$ 1000, 25 Year Sinking Fund 8% gold bond of 1925

Republic of Poland, Stabilisation Loan of 1927

Dollar Tranche

This loan has been issued in 1927 and amounted to 62 million dollars and 2 million pounds sterling. Loan has been taken in order to stabilise Polish currency, after exchange rate turmoil of 1925 and 1926. Money has been used mainly for increase of share capital of Bank Polski, which at that time acted as central bank. Rest has been used for withdrawal of circulating treasury notes and replacing them with silver coins. The Zloty has been officially devalued from 5,18 to 8,91 per dollar and stabilised at that level. Loan has been issued at 92% of face value and distributed in USA, England, Switzerland, Sweden, Holland, France and Poland. Originally 7% gold bond due 1947 has been converted in 1938 into 4.5% bond due 1968. Converted bonds (majority of the whole issue) have been overprinted, and new sheets of coupons have been attached. In Poland those bonds have (at the holders option) either been converted into 4.5% dollar bonds, exchanged for bonds of 4.5% Internal State Loan of 1937 Series C issued in Polish Zloty, or redeemed in cash paid out by the State Treasury in Polish Zloty. Bonds have been issued in $100 (orange), $500 (olive) and $1000 (blue). Most of them bear dark blue overprint effecting conversion, and some are also overprinted in red as Tranche Francaise. French tranche has been distinguished because for those bonds issued for French market, the tax on interest coupons was paid by Polish State.

Sterling Tranche

This bond has been issued in 1927 as a part of Stabilisation Loan. Sterling tranche amounted to 2 million pounds issued as 100 and 500 pounds bonds. sterling tranche has been distributed in the UK. In 1938 on the basis of agreement reached with Lazard Brothers & Company, the whole issue has been converted to 4.5% loan due 1967. The conversion has been effected by overprinting existing bonds and exchanging interest coupons. This loan has never been fully repaid but reminder is quite small due to the fact that majority of bonds were purchased by Poland under various stllement offers paying on average 40% of the face value.

See Stabilization Loan Fact Sheet on the next page !