In 1929, the world was caught by a major crisis caused by overproduction. Its effects were very damaging to Albania. During this year, Zog saw the first signs of the crisis, mainly in the financial and monetary system; they became more sensitive in 1930. The peak of the crisis was between 1934 and 1935. Most industries were paralyzed or went bankrupt. The crisis deeply affected all credit systems. At this time, due to the ongoing budget deficit, and financial difficulties evident in many areas and sectors of the country, loans were taken from Western countries, but the majority were from Italy.