bailout


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Related to bailout: austerity

Bailout

A capital infusion offered to a business with a national or multi-national footprint that is in danger of bankruptcy, insolvency, or total liquidation.  Financial aid can be provided in the form of debt or equity offerings, cash contributions, or some form of loan or line of credit, and is often accompanied by greater government oversight and regulation.  The failure of a business that employs thousands or plays an influential role in the economy potentially can send shock waves throughout the entire economy, including other industries. The credit crisis that began in 2007 created numerous failures around the world, which resulted in a large number of government-sponsored bailouts in almost every industry across the globe. See: Conservator, Conservatorship.

Bail Out

To give money to a company so that it avoids bankruptcy and is able to continue operations. Generally speaking, the term often refers to a government bailing out a private corporation. A bailout may take the form of a direct transfer of capital, or it may occur indirectly through low or no interest loans and subsidies. For example, in September of 2008 the insurance conglomerate AIG found itself in dire straits. The Federal Reserve bailed it out by extending $85 billion (and eventually $182 billion) in credit to the company. Proponents of bailouts say that they keep an economy afloat when an industry thought too big to fail otherwise would collapse. Critics contend that bailouts are inefficient and that non-competitive companies ought to fail. See also: Cash for clunkers.

bailout

The financial rescue of a faltering business or other organization. Government guarantees for loans made to Chrysler Corporation constituted a bailout.
References in periodicals archive ?
He said that IMF bailout package would give stability to foreign reserves and enhance the confidence of international financial institution.
Meanwhile, State minister for revenue Hammad Azhar has said that Pakistan has reached an 'agreement in principle' with IMF over bailout package.
The post Tsipras declares "day of liberation" after Greece exits bailout appeared first on Cyprus Mail .
April 2010: Greek Prime Minister George Papandreou formally requests an international bailout for Greece.
Our ad campaign is a clear response to Chairman Chatterjees efforts to force millions of working families and businesses to bailout uneconomic coal and nuclear plants, Hitt said.
The head of the central bank, governor Yannis Stournaras, said that Greece and its foreign lenders must make efforts in order to conclude swiftly a review of the country's compliance with fiscal targets and reforms under its current bailout.
The conversation (http://www.ibtimes.com/wikileaks-release-imf-officials-discuss-bailing-greek-bailout-2347329) suggested that the IMF may threaten to pull out of the country's bailout as a tactic to force EU lenders to offer more debt relief.
But the word "bailout" is used in different ways, and it is sometimes hard to understand what people are complaining about.
In a televised address to the nation, Mr Tsipras defended his government's negotiating tactics and said Greece got the best deal possible for its three-year, 86 billion euro bailout from other eurozone countries.
Athens repaid the debt using money from the first instalment of its new bailout after the programme cleared its final hurdle on Wednesday night, with the ESM European bailout fund approving the 86 billion euro ($96 billion) deal.
Greece heads into new negotiations on Monday for its third bailout since 2009.
TEHRAN (FNA)- Last week's uncertainty over the Greek bailout crisis took its toll on US citizens' confidence in their own economy, with more than half of those surveyed in a recent Gallup poll pessimistic about its future performance.