The London Agreement was ratified, in which Western countries forgave 50% of Germany’s debt (accumulated from two world wars, both caused and lost). This was a colossal sum, given that the total debt amounted to 100% of Germany’s GDP. Furthermore, the remaining debt could be repaid over a 30-year period. The Soviets, however, obtained payment down to the last mark. The remaining 50% was to be repaid upon German reunification. But in 1990, Chancellor Kohl opposed the renegotiation of the German debt (which would have caused the third German default of the 20th century, after 1923 and 1953). For the second time, Western nations such as Italy and Greece agreed to forgo German repayment.
