The state played a decisive role in the development of agriculture by providing motives to farmers, but also through a generous credit policy. What marked the government policy of the interwar period though, was the completion of the Agrarian Reform through expropriations. Landowners were indemnified through bonds covered by the public treasury with a 6% annual interest rate. The abolition of big landownership resulted in the dependence of cultivators by civil credit organisations, that is banks, and not by the usurious credit services provided by big landowners.
Agricultural credit granted by the National Bank
Year ----- Total in million drachmae
1923 ----- 220,000,000
1925 ----- 932,000,000
1926 ----- 723,800,000
1927 ----- 1,144,400,000
The debts of the indemnified farmers towards the state, as well as the influential presence of the state in organisations that lended the farmers, expanded significantly the economic activities of the state. From 1922 public organisations started to be established. Their aim was to channel agricultural products to the free markets. In 1925 the Autonomous Currant Organisation (ASO) was founded. ASO was an amalgam of tertiary cooperative organisations and cartel-type company associations, a public entity of public benefit. Its aim was to balance the supply to the demand of the Corinthian currant "through purchase or retention of the surplus", to advertise, promote and make the most of the product in trade. ASO insured the cooperative's produce and made wine out of the green currant.
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