Gambling with ocean hazards

Interest rates and sea loans in colonial connections (Portugal, 1600–1800)

Bibliographic Data

ID11394174
AuthorsLeonor Freire Costa (0000-0002-8867-3036, University of Lisbon, corresponding author), Tomas Pinto Albuquerque (Universidade de Lisbon), Tomás Pinto de Albuquerque (0000-0002-0057-3509)
Year2025
Volume43
Issue3
Pages413-434
Publication date2025-12-01
Open AccessYes
TypeARTICLE
VenueRevista de Historia Económica / Journal of Iberian and Latin American Economic History (JOURNAL)
Journal identifiersISSN: 0212-6109 • E-ISSN: 2041-3335
PublisherCambridge University Press (CUP) (PUBLISHER)
DOI10.1017/s0212610925100797
OpenAlexW4415503113
LanguageEN
References cited18

This study examines sea loans in the Portuguese Empire (1600–1800). Structured as contingent contracts, this kind of credit served as a risk-sharing agreement for financing transoceanic trade routes. Using notarial protocols and court records, the study examines how maritime regulations, international political relations, and information problems influenced the pricing of loan agreements. The study demonstrates that the introduction of the convoy system, which distinguished Portugal–Brazilian connections, coincided with a downward trend in sea loan rates, which converged with those of safer short-term lending instruments. In contrast, periods of war and free navigation increased uncertainty, making maritime insurance and sea loans complementary instruments for risk management

Colonialism · Empire · Interest rate · Landlocked country · Loan · Portuguese · SAFER · Colonialism, slavery, and trade · Global Maritime and Colonial Histories · Historical Economic and Social Studies

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