The Dawes Plan was a financial arrangement established in 1924 to help Germany pay its reparations after World War I. It aimed to stabilize the German economy by restructuring its debt and providing loans from the United States. This plan was named after American banker Charles G. Dawes, who played a key role in its development. Under the Dawes Plan, Germany received loans to boost its economy, which in turn allowed it to make reparations payments to the Allied powers. The plan helped to temporarily ease economic tensions in Europe, but it ultimately laid the groundwork for future financial instability, leading to the Great Depression.