Although the conditions proposed by both sides were widely different, the negotiation proceeded very smoothly under the mediation of all parties involved.
It was impossible to pay money. Even if the Sultan Government was willing to pay, they couldn't come up with the funds, as the war had already broken their bank.
The Ottoman Empire had essentially gone financially bankrupt by then, not only suspending international debt payments but also unable to pay the salaries of their domestic public servants.
Austria had initiated the war not to extort war reparations; although they claimed an astronomical figure, it was merely a sky-high initial demand.
If there was no money, they would cede territory; this was an established practice on the European Continent. In reality, there wasn't much to discuss; territories that had been taken wouldn't be returned.
