At Mozaffar al-Din's accession Persia faced a financial crisis, with annual governmental expenditures far in excess of revenues due to the policies of his father. During his reign, Mozzafar ad-Din attempted some reforms of the central treasury; however, the previous debt incurred by the Qajar court, owed to both England and Russia, significantly undermined this effort. He furthered this debt by borrowing even more funds from Britain, France, and Russia. The income from these later loans was used to pay earlier loans rather than create new economic developments. In 1908, oil was discovered in Persia but Mozzaffar ad-Din had already awarded William Knox D'Arcy, a British subject, the rights to oil in most of the country in 1901.