Belkan economic crisis

The Belkan economic crisis was a major event in the history of the Principality of Belka, and the central event that would lead to the Belkan War in 1995.

History
The roots of the economic crisis date back to the late 20th century. In 1987, the budget of the Belkan armed forces suffered a substantial increase. In light of the situation, the political authority was transferred to the eastern countries. The following year, economic problems arised, giving way to light unrest. In response, the ruling National Assembly amended a review of the country's federal law, which allowed the eastern territories of Belka to secede and break away. The northeastern region became a part of FATO, whereas the southeastern region settled down as the Republic of Ustio.

The secession of the eastern lands, however, failed to alleviate the economic troubles of Belka. By the turn of the decade, the Federation's economic situation worsened. In order to obtain money to sustain its infrastructure, Belka sold the northern area of the "Five Great Lakes" to the Osean Federation in August 29, 1991, amidst nation-wide riots from members of the opposition Fatherland and Workers Party and a fraud scandal involving a joint Osean-Belkan corporation. After the deal, the country fell in widespread unrest. In December 12, the ruling National Assembly was ousted from power, and the Fatherland Party became the ruling party of the country.

Things would remain stable in the region until the middle of the decade. In March 25, 1995, underground natural resources were located in Area B7R, an arid mountain range located within the Ustio-Belka border. Desperate, the Belkan military began an armed territorial expansion, capturing northern Sapin, part of Osea and nearly the entirety of Ustio within days, thus starting the Belkan War.