Hätärahoituksen

Hätärahoitus, often translated as emergency funding or bailout, refers to financial assistance provided to an individual, company, or government in a severe and immediate crisis. This funding is typically short-term and aims to prevent imminent collapse or a catastrophic outcome.

In a business context, hätärahoitus might be sought by a company facing bankruptcy due to unexpected losses, a sudden drop in demand, or a major operational disruption. Lenders or investors providing such funding often do so with a higher risk premium, demanding more favorable terms due to the precarious situation. This can include higher interest rates, equity stakes, or collateral requirements. The goal is to stabilize the entity, allowing it time to restructure its operations or find a more sustainable long-term solution.

For individuals, hätärahoitus could come in the form of emergency loans to cover immediate and essential expenses like rent, medical bills, or essential utilities during a period of unexpected job loss or a significant financial setback. These loans are typically small and come with very short repayment periods.

Governments may resort to hätärahoitus to support critical sectors of their economy, financial institutions, or even other nations during widespread economic downturns or natural disasters. Such interventions are often controversial, involving significant public funds and raising questions about moral hazard and the long-term sustainability of the recipient's financial health. The overarching principle of hätärahoitus is to address an acute financial emergency to avert a greater crisis.