17 January — the Russian diplomatic representative in Sofia, D.K. Sementovsky-Kurillo, presented to the government of Aleksandar Malinov a special proposal from the government of Pyotr Arkadyevich Stolypin to settle the issue of independence through a financial arrangement among Russia, Turkey, and Bulgaria. The government of Aleksandar Malinov accepted the proposal immediately. England, France, and Italy supported Russia’s proposal. The Sublime Porte also accepted it.
Not only the fear of losing part of its influence in Bulgaria, but also the principled stance of Aleksandar Malinov’s government and the convincing position of Russian diplomacy led the government of Pyotr Arkadyevich Stolypin to propose the following financial arrangement: Russia forgave the remaining Ottoman debt to Russia from the war of 1877–1878 in the amount of 125 million gold leva. Turkey agreed to accept this sum as compensation for the losses resulting from the declaration of Bulgarian independence. In return, Bulgaria undertook to pay Russia 82 million gold leva. But since Bulgaria did not have such funds, Russia offered it a favorable long-term loan at a low interest rate.
3 March — in St. Petersburg, the foreign ministers of Russia, A.P. Izvolsky, and of Turkey, Rıfat Pasha, signed a Russo-Turkish protocol as a preliminary agreement defining the financial scheme for the recognition of Bulgarian Independence.
6 April — in Constantinople, Andrey Lyapchev and Rıfat Pasha, in the presence of the ambassadors of England, France, and Russia, signed a Bulgarian-Turkish protocol in which Turkey recognized Bulgaria’s independence.
On the same day, in St. Petersburg, a Bulgarian-Russian financial deal was concluded. Russia granted Bulgaria a loan, without guarantees or oversight, in the amount of 82 million leva for a 75-year term at 4.75%, with repayments beginning on 1 October 1909. However, Bulgaria never repaid this sum to Russia.
At the very beginning of the 1920s, the government of V.I. Lenin forgave Bulgaria the remainder of this debt.