Bailout

A situation in which a business, individual or government offers money to a failing business, state, or entity in order to prevent the consequences that arise from its demise. Bailouts can take the form of loans, bonds, stocks or cash. They may or may not require reimbursement.

An example of a state bailout is Greece, which fell into financial difficulty in 2009 when it was no longer able to meet its debt obligations after a sharp increase in government debt levels. Eurozone leaders agreed to offer the country a series of bailout loans to prevent it from going bankrupt, with possibly severe consequences for the global economy and financial markets.