bailout agreements

Bailout agreements are arrangements where governments or organizations provide financial assistance to prevent a struggling company or institution from failing completely. This typically involves offering funds, loans, or other support conditions to stabilize the entity’s finances. In return, the provider may seek certain concessions, oversight, or future repayment terms. The goal is to protect the broader economy, maintain jobs, and prevent wider economic disruption. Bailouts are often controversial, as they involve public funds and questions about fairness, risk, and moral hazard, but are used as a last resort to avert collapse.