Khedive Ismail borrowed heavily on unfavorable terms from European banks

Evidence

Ismaïl struggled with this commission, known as the Caisse de la Dette Publique, or Dual Control, for three years, and used the unpopularity of the European commissioners to garner support for a pro-Ismaïl Nationalist Party. The governments of Britain and France, encouraged by Germany and Austria, finally forced the Ottoman sultan to depose Ismaïl in 1879. They installed Ismaïl’s son, Tawfïq, as the new khedive. — Eve M. Troutt Powell, A Different Shade of Colonialism_…, 298 (#expands, via linked claim)

By 1876, the khedive had become so financially desperate that he was forced to sell 44 percent of Egypt’s Suez Canal shares to the British government. The situation was worsened by the fact that, since 1875, the Ottoman Empire had been facing bankruptcy, and, as a province of the empire, even with virtual political autonomy, Egypt’s credit was intimately connected to that of the empire. By the spring of 1876, all hope was exhausted and Ismaïl declared the Egyptian Treasury bankrupt (it was followed seven months later by the Ottoman Empire). The British and French governments, in support of their bondholders, reached an agreement in which an independent Anglo-French commission would assume the task of consolidating and administering the Egyptian government's debt repayments. Thus, by 1876, direct European control of Egyptian finances had begun. — <cite>Eve M. Troutt Powell, A Different Shade of Colonialism_…, 298</cite> (#expands`, via linked claim)

Categorization

• XREF: connects to: Khedive Ismail disguised Egypt’s African expansion as a civilizing reform mission; European creditors leveraged Egyptian debt to depose and replace the khedive — Eve M. Troutt Powell, A Different Shade of Colonialism_…, 298; Bankruptcy and empire-linked credit tied Egypt to direct European financial control — Eve M. Troutt Powell, A Different Shade of Colonialism_…, 298 (+1 more)

Broader Connections

• European creditors leveraged Egyptian debt to depose and replace the khedive #expands (0.95) — Eve M. Troutt Powell, A Different Shade of Colonialism_…, 298
• Bankruptcy and empire-linked credit tied Egypt to direct European financial control #expands (0.95) — Eve M. Troutt Powell, A Different Shade of Colonialism_…, 298