The £22billion reparations were set by the Allied victors – mostly Britain, France and America – as compensation and punishment for the 1914-18 war. The reparations were set at the London Debt Agreement on June 28, 1919, by the Allied victors – mostly Britain, France and America. Most of the money was intended to go to Belgium and France, whose land, towns and villages were devastated by the war, and to pay the Allies some of the costs of waging it. The initial sum agreed upon for war damages in 1919 was 226billion Reichsmarks, a sum later reduced to 132billion. In sterling at the time this was the equivalent of some £22billion.
Source and readmore: Daily Mail