The Dawes Plan was designed to solve the problem of how to get Germany to pay its reparations without bankrupting the country. The plan called for Germany to make annual payments of 1 billion gold marks ($250 million) for the first five years, with the payments increasing gradually over time. The plan also provided for loans to Germany from American and other foreign banks to help the country rebuild its economy and make the reparation payments.
The Dawes Plan was successful in stabilizing the German economy and allowing Germany to make its reparation payments. However, the plan did not address the long-term problem of Germany's war debt, which ultimately led to the country's default on its reparations payments in 1932.