The constant war effort between 1912 and 1922 aggravated Greece's public finance. Since the end of World War I the country's monetary situation was based to a large extent on the anticipation of receiving the so-called "Allied Credits". It was on the basis of these credits, which would be paid in any case after the end of the war, that banknotes were issued and that a fiscal policy was implemented. Nonetheless, only a small part of these credits were paid to the Greek state by the Allies before the change of government in 1920. The electoral defeat of the Venizelists and particularly the restoration of King Constantine to the throne had an influence on the stoppage of paying the Allied Credits. Therefore, the continuation and escalation of the war in Asia Minor were carried out on the exclusive expense of the Greek state. This situation used up all Greece's exchange reserves and led to the issue of a forced loan in 1922. The retreat of the army from the Asia Minor front, the Asia Minor disaster and the arrival of refugees increased excessively the obligations of the public treasury that was already exhausted and disrupted. Political instability and economic impasses contributed to the precipitous fall of the drachma's value and to the further deterioration of the economic indicators. The imposition of the new forced loan during the Pangalos dictatorship revealed the gravity of the country's economic problems. The country would exit this vicious circle of monetary crisis only after the implementation of the economic policy of the all-party government, which with minister G. Kafantaris succeeded in stabilising the currency.