dotar un deterioro al crédito

English translation: to generate a credit impairment

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Spanish term or phrase:dotar un deterioro al crédito
English translation:to generate a credit impairment
Entered by: Sonia Maria

15:11 Jul 25, 2021
Spanish to English translations [PRO]
Finance (general) / consolidated report
Spanish term or phrase: dotar un deterioro al crédito
¿Cómo se podría traducir esta expresión en este contexto?

Créditos a empresas-
En el ejercicio 2020, la compañía ha concedido nuevos créditos por importe de 3.662.032 euros a la sociedad vinculada XXX. El valor neto contable de los saldos mantenidos ante esta sociedad asciende a 5.176.528 euros al 31 de diciembre de 2020. La totalidad del saldo vivo al 31 de diciembre de 2020, clasificado al largo plazo de acuerdo con el plazo previsto para su recuperación. Asimismo, se ha establecido un bien inmueble propiedad de la sociedad vinculada como garantía hipotecaria a dicho crédito.
Adicionalmente, la compañía mantiene un crédito con la Sociedad vinculada XXX por importe de 5.273.500 euros.
Dichos préstamos tienen vencimiento a largo plazo y devengan intereses anuales que se acumulan al importe pendiente de los mismos, siendo el tipo de interés aplicable el legal del dinero.
Durante el ejercicio 2020 ***se ha dotado un deterioro por importe de 2.000.000 euros al crédito*** mantenido con la sociedad vinculada XXX

¿Sería correcto? an impairment loss amounting to 2.000.000 euros has been recognised for the credit...???

Gracias!
Sonia Maria
Spain
to generate a credit impairment
Explanation:
Impaired credit occurs when there has been a deterioration in the creditworthiness of an individual or entity.

Borrowers with impaired credit will generally have lesser accessibility to credit facilities and will have to pay a higher rate of interest on loans.

Impaired credit may require drastic changes to operations or procedures to alleviate financial stress--whether that involves paying off debts like credit card debt, or a company reducing expenses and selling assets.

Source: Investopedia
Selected response from:

Francois Boye
United States
Local time: 15:46
Grading comment
Thanks a lot!
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +1to generate a credit impairment
Francois Boye
3allow for a depreciation in credit value
Lisa Rosengard
3the loan was impaired by 2,000,000 Euros
AllegroTrans
1loan write-off
andres-larsen


Discussion entries: 2





  

Answers


4 hrs   confidence: Answerer confidence 1/5Answerer confidence 1/5
loan write-off


Explanation:
€.2.000.000 write-off on the Company's outstanding inter-company loan.


Non-Performing Loan Write-Offs - Pubdocs.worldbank.org.
https://pubdocs.worldbank.org › FinSAC-NPL-Write...PDF
A write-off is an accounting term for the formal recognition in the financial statements that a borrower's asset no longer has value. Usually, loans are written off when they are 100 percent provisioned and there are no realistic prospects of recovery. These loans are transferred to the off-balance sheet records.

Why Do Banks Write Off Bad Debt? - Investopedia
https://www.investopedia.com › ask
What Is a Write-Off? ... Debt that cannot be recovered or collected from a debtor is bad debt. Under the provision or allowance method of accounting, businesses ...

Write-Off Definition - Investopedia
https://www.investopedia.com › wri...
A write-off primarily refers to a business accounting expense reported to account for unreceived payments or losses on assets. · Three common scenarios requiring ...

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Note added at 4 hrs (2021-07-25 19:58:26 GMT)
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€.2.000.000 write-off on the Company's outstanding intercompany loan to its controlled affiliate.

Intercompany loan definition — AccountingTools
https://www.accountingtools.com › ...
14 abr. 2021 — What is an Intercompany Loan? · To shift cash to a business unit that would otherwise experience a cash shortfall · To shift cash into a business ...


Noncontrolled Affiliates | English to Spanish ... - ProZ.com
https://www.proz.com › kudoz › finance-general › 397...
16 ago. 2010 — Spanish translation:sociedad vinculada. Explanation: Basic types of affiliates: A controlled affiliate is an enterprise in which the ...

andres-larsen
Venezuela
Local time: 15:46
Native speaker of: Native in EnglishEnglish
PRO pts in category: 141
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4 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
to generate a credit impairment


Explanation:
Impaired credit occurs when there has been a deterioration in the creditworthiness of an individual or entity.

Borrowers with impaired credit will generally have lesser accessibility to credit facilities and will have to pay a higher rate of interest on loans.

Impaired credit may require drastic changes to operations or procedures to alleviate financial stress--whether that involves paying off debts like credit card debt, or a company reducing expenses and selling assets.

Source: Investopedia

Francois Boye
United States
Local time: 15:46
Specializes in field
Native speaker of: Native in FrenchFrench
PRO pts in category: 335
Grading comment
Thanks a lot!

Peer comments on this answer (and responses from the answerer)
agree  Adrian MM.: - allocate rather than generate
45 mins
  -> Thanks!
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8 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5
allow for a depreciation in credit value


Explanation:
"Impairment occurs when a business asset suffers a depreciation in fair market value of the asset on the company's financial statements. Under the U.S. accounting principles, assets considered as impaired must be recognized as a loss on an income statement. Impairment loss is a decrease in a net carrying value of an asset greater than the future undisclosed cash flow of the same asset. Impairment occurs when assets are sold or abandoned because the company no longer expects then to benefit long-run operations."

SP: "El deterioro sucede cuando los bienes o los muebles activos de una empresa experimentan una depreciación en su valor del mercado equitativo. Eso excede el valor del libro de comptabilidad del mueble activo en los estados financieros de la empresa. Los principios estadounidenses de comptabilidad afirman que los activos considerados como deterioros deben ser reconocidos como una depreciación en un documento o un estado de los saldos. La pérdida por deterioro es un decremento del valor neto llevado de un activo más grande que el futuro del efectivo no declarado del mismo bien activo. El deterioro sucede cuando se venden o se abandonan los activos porque la empresa no atiende que vaya a beneficiarse de los operativos al largo plazo."

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Note added at 1 day 6 hrs (2021-07-26 21:13:02 GMT)
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It's about the devaluation of property assets and loans.

(ES: Se trata de la devaluación de inmuebles y préstamos.)


    https://www.investopedia.com/ask/answers/101314/how-impairment-loss-calculated.asp
Lisa Rosengard
United Kingdom
Local time: 20:46
Works in field
Native speaker of: English
PRO pts in category: 4

Peer comments on this answer (and responses from the answerer)
neutral  Kristina Love: Your explanation doesn't seem to match your answer. "Depreciation" is something else; "impairment" is correct.
15 hrs
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6 days   confidence: Answerer confidence 3/5Answerer confidence 3/5
the loan was impaired by 2,000,000 Euros


Explanation:
I would rephrase this and not use the Spanish sentence construction

AllegroTrans
United Kingdom
Local time: 20:46
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 251
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