a bail-in

[capricho_swirl]

I wanted to know how you would translate a bail in (as opposed to a bail out) in Spanish? It's when the shareholders, bond holders and sometimes also customers with over a certain amount of investment in a bank are responsible for the bank's insolvency as opposed to it receiving money from the government to bail it out. (I probably haven't explained that wonderfully - hopefully you know what I mean, if not, I'll try to provide a dictionary link for a better definition).

 

[Adolfo Afogutu]

Hola:
El único nombre que he encontrado es "recapitalización interna". Un ejemplo de un diario financiero de México, al respecto de la crisis bancaria de Chipre:

“Alemania, Finlandia y los Países Bajos quieren que los acreedores o los depositantes paguen las pérdidas heredadas, a través de algún tipo de “bail-in” o recapitalización interna, antes de echarse al hombro la responsabilidad por esos bancos”, añadió.

En el fondo, se trata de convertir en capital partidas que forman parte del pasivo, capitalización de pasivos, forzosa, en este caso.

 

[Ayutuxtepeque]

Hola Capricho:

Apoyándome en la explicación que brinda Adolfo, otra alternativa que vos poder ocupar como equivalente de "bail in" es "capitalización de deuda".

Saludes.

 

[William Stein]

Hola:
El único nombre que he encontrado es "recapitalización interna". Un ejemplo de un diario financiero de México, al respecto de la crisis bancaria de Chipre:

En el fondo, se trata de convertir en capital partidas que forman parte del pasivo, capitalización de pasivos, forzosa, en este caso.

Hi Adolfo,

I don't that think that your quote uses the term correctly. According to capricho swirl (and this: http://lexicon.ft.com/Term?term=bail_in) a bail-in is not a way to save a bank, it's a term describing when investors (especially bond-holders) are responsible for a bank going bankrupt because their investments are protected (the bank has to redeem their bonds no matter what). The image of a bail-out is people taking water out of a sinking ship to keep it afloat, but the idea of "bail in" is the investors throwing even more water into the sinking ship!
Maybe "sabotaje del banco por inversionistas" or "responsabilidad de los inversionistas por la quiebra"?

 

[Ayutuxtepeque]

Un "bailout" se da en dos momentos:

a)Cuando un grupo de Estados u organismos internacionales inyectan recursos frescos a un país a efecto de evitar que incurra en mora en el pago de sus obligaciones.

b)Cuando es el Estado el que aporta liquidez, en especial, al sector bancario de su economía, con el fin de conjurar potenciales quiebres o insolvencias que pudieran llevar al país entero a una debacle financiera.

La equivalencia usual de "bailout" al español es "rescate financiero" aunque en el lenguaje financiero se acostumbra mucho también ocupar el término "salvataje", pese a que este vocablo aún no es reconocido por la RAE.

Un "bail-in", al igual que "bail-out", también implica impedir la bancarrota de una corporación, pero a diferencia del "bailout" los recursos financieros no provienen de afuera sino de las entrañas mismas de la compañía endeudada. La idea es que los acreedores asuman su parte de responsabilidad por la crisis financiera de ésta, mediante la capitalización de sus deudas de pasivo a capital. En este sentido, los acreedores comparten el riesgo, junto con los accionistas, por las pérdidas que pueda tener la empresa. Mediante el "bail-in" disminuye la carga por intereses y se mejoran los ratios financieros de liquidez. Tal y como mencioné antes, una equivalencia al español de "bail-in" es simplemente "capitalización de deuda".

 

[k-in-sc]

Hi Adolfo,

I don't that think that your quote uses the term correctly. According to capricho swirl (and this: http://lexicon.ft.com/Term?term=bail_in) a bail-in is not a way to save a bank, it's a term describing when investors (especially bond-holders) are responsible for a bank going bankrupt because their investments are protected (the bank has to redeem their bonds no matter what). The image of a bail-out is people taking water out of a sinking ship to keep it afloat, but the idea of "bail in" is the investors throwing even more water into the sinking ship!
Maybe "sabotaje del banco por inversionistas" or "responsabilidad de los inversionistas por la quiebra"?

You've gotten the definition backwards.

 

[William Stein]

You've gotten the definition backwards.

I have no idea what that cryptic statement is supposed to mean but I was just following the definition given by the asker, if you look at post 1, as well as the article I cited. Anyway, the meaning has probably evolved because when the Economist first invented the term it was applied to the banks in Cyprus where the banks refused to pay what it owed to certain creditors to avoid bankruptcy, which can't be interpreted as any kind of voluntary arrangement to save the bank, it was simply unilaterally imposed to the horror of the investors. Now it seems to mean a more voluntary arrangement by the creditors waive some of their debts (which is a way of saving the bank voluntarily, as Adolfo and Ayu. said).

 

[k-in-sc]

In a bail-in, the creditors, aka bondholders, are not responsible for causing a bank to become insolvent (as you understood the OP to say), they're held responsible for remediating the insolvency (what the OP meant), via a forced recapitalization.
The original Cyprus situation involved depositors, who are not investors.

 

[William Stein]

In a bail-in, the creditors, aka bondholders, are not responsible for causing a bank to become insolvent

Yes it's true that with my wild imagination I interpreted "bond holders and sometimes also customers with over a certain amount of investment in a bank are responsible for the bank's insolvency" as meaning that the ""bond holders and sometimes also customers with over a certain amount of investment in a bank are responsible for the bank's insolvency". I will try to exercise greater caution in the future. Unlike you, my great psychic powers do not permit me to understand what "he really meant".

 

[k-in-sc]

Doesn't take a psychic

 

[robjh22]

It's when the shareholders, bond holders and sometimes also customers with over a certain amount of investment in a bank are responsible for the bank's insolvency

(Italics supplied)

No, it isn't that at all. OP needs to substantiate that definition or modify it before it yields any more translations.

The image of a bail-out is people taking water out of a sinking ship to keep it afloat, but the idea of "bail in" is the investors throwing even more water into the sinking ship!Maybe "sabotaje del banco por inversionistas" or "responsabilidad de los inversionistas por la quiebra"?

No. The investors aren't injecting any new capital ("throwing more water") into the bank in a bail-in, and the point of the bail-in is not to sabotage or bankrupt the bank, but to save it. Yes, I know you were taking a cue from the OP's understanding of a "bail-in."

Now it seems to mean a more voluntary arrangement by the creditors waive some of their debts (which is a way of saving the bank voluntarily, as Adolfo and Ayu. said).
[/QUOTE

If this is correct, especially the "voluntary arrangement", and it may well be (some references would tell us one way or the other), then I don't see how the first explanation can be correct.

 

[William Stein]

(Italics supplied)

No. The investors aren't injecting any new capital ("throwing more water") into the bank in a bail-in,

You're misunderstanding the metaphor, which I admit is confusing. Money doesn't equal water, water is a metaphor for the source of the problem (what is sinking the ship). A bailout does not mean that people take money out of the banks, it means that they help solve the problem by taking water out = pouring money in. In the bail-in, pouring water into the ship = exacerbating the problem not pouring money into the ship.

(Italics supplied)
If this is correct, especially the "voluntary arrangement", and it may well be (some references would tell us one way or the other), then I don't see how the first explanation can be correct.

]
Because "Now" implies a change in the definition over time. You'll agree that the bail-in in Cyprus, where the term was first coined by The Economist" was no kind of voluntary arrangement, at least nothing that can be compared to the entirely voluntary bail-out arragements by the IMF, for example.

 

[hermenator]

Hola Capricho:

Apoyándome en la explicación que brinda Adolfo, otra alternativa que vos poder ocupar como equivalente de "bail in" es "capitalización de deuda".

Saludes.

Concuerdo con Ayutuxte. En mi experiencia como abogado corporativo, capitalización de deuda es el término genérico más usado en la práctica. Aunque, si buscas opciones más específicas, también pueden funcionar: rescate (de la empresa) por acreedores o quita de deuda a cambio de acciones. La traducción más cercana es rescate interno, pero es demasiado literal y nadie lo va a entender.