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Zinsen ausschütten

English translation: pay interest (out of distributable profits)

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06:18 May 18, 2005
German to English translations [PRO]
Bus/Financial - Accounting
German term or phrase: Zinsen ausschütten
"Ferner hat die [X AG] eine Garantieerklärung gegenüber den Genussrechtsinhabern der [Y KG] für die Zinsverbindlichkeiten in Höhe von 8% der jeweiligen Einlagen abgegeben, wenn die [Y KG] die Zinsen nicht oder nicht vollständig ausschütten kann. Die maximale Einlage beträgt 2.000.000 Euro, zum 31.12.2004 263.000 Euro. Die Zinsen sind bereis ausgeschüttet."

Well "distribute interest", except I never heard of interest being distributed. So is it just "pay interest", or is there something trickier here? This is in relation to an Abschluß under HGB.
Chris Rowson
Local time: 16:14
English translation:pay interest (out of distributable profits)
Explanation:
the reason for the unusual pairing of 'Zinsen' and 'ausschütten' is that Genussrechte are (quasi-)equity instruments and the interest to which they are entitled is paid out of distibutable profits, if there are any. So you have the apparent anomaly of 'Ausschüttung der Rendite': http://www.brigels.ch/docu/holding_zeichnungsprospekt.pdf

I don't think the other answers are wrong, but I'm not sure you can 'distribute' interest in English, so I agree with Monika, but you might want to add something in parenthesis just to bring out the fact that we are talking about interest paid out of profits

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Note added at 2 hrs 21 mins (2005-05-18 08:40:16 GMT)
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eg \'...in the event that Y does not have sufficient distributable profits to pay all or part of the interest due...\'
Selected response from:

Kieran McCann
United Kingdom
Local time: 15:14
Grading comment
Thank you all for your contributions. I will admit that I copped out and just translated as “pay interest”. Victor´s findings with Merrill Lynch etc. are very interesting, but because I am not familiar with the phrase “distribute interest”, and my document was little business rather than big business, I decided to stay clear of it. I´ll give the points to Kieran, though, on the grounds of his explanation of why “ausschütten” is used here, which agrees with everything else I see in the document.
4 KudoZ points were awarded for this answer

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Summary of answers provided
3distribute interest (as a dividend)
Victor Dewsbery
3pay interest (out of distributable profits)Kieran McCann
3pay interestMonika Leit
3to discharge interest liability
Mustafa Er (BSc MA)


  

Answers


15 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5
Zinsen ausschütten
to discharge interest liability


Explanation:
-

Mustafa Er (BSc MA)
Turkey
Local time: 17:14
Specializes in field
Native speaker of: Native in TurkishTurkish, Native in EnglishEnglish
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1 hr   confidence: Answerer confidence 3/5Answerer confidence 3/5
Zinsen ausschütten
pay interest


Explanation:
I haven't heard of interest being distributed so I think pay is meant. You say in German "Zinsen ausschütten" but I don't think the literal translation would be correct here.

Monika Leit
Local time: 16:14
Specializes in field
Native speaker of: Native in GermanGerman
PRO pts in category: 47

Peer comments on this answer (and responses from the answerer)
neutral  Victor Dewsbery: Paying interest is what I do when I repay a loan. The text presents a triangular relationship, and this needs to be expressed somehow.
4 hrs
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2 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5
Zinsen ausschütten
pay interest (out of distributable profits)


Explanation:
the reason for the unusual pairing of 'Zinsen' and 'ausschütten' is that Genussrechte are (quasi-)equity instruments and the interest to which they are entitled is paid out of distibutable profits, if there are any. So you have the apparent anomaly of 'Ausschüttung der Rendite': http://www.brigels.ch/docu/holding_zeichnungsprospekt.pdf

I don't think the other answers are wrong, but I'm not sure you can 'distribute' interest in English, so I agree with Monika, but you might want to add something in parenthesis just to bring out the fact that we are talking about interest paid out of profits

--------------------------------------------------
Note added at 2 hrs 21 mins (2005-05-18 08:40:16 GMT)
--------------------------------------------------

eg \'...in the event that Y does not have sufficient distributable profits to pay all or part of the interest due...\'

Kieran McCann
United Kingdom
Local time: 15:14
Specializes in field
Native speaker of: English
PRO pts in category: 125
Grading comment
Thank you all for your contributions. I will admit that I copped out and just translated as “pay interest”. Victor´s findings with Merrill Lynch etc. are very interesting, but because I am not familiar with the phrase “distribute interest”, and my document was little business rather than big business, I decided to stay clear of it. I´ll give the points to Kieran, though, on the grounds of his explanation of why “ausschütten” is used here, which agrees with everything else I see in the document.

Peer comments on this answer (and responses from the answerer)
neutral  Victor Dewsbery: I don't see where the text says the interest is paid out of profits. Distributing interest seems quite common in English (582 x Google)
3 hrs
  -> Hello Victor. 'Ausschütten' means 'to pay out of profits'; an understanding of the nature of Genussrechte confirms this. I can't find any google hits which refer to distributing interest in the sense of paying the interest due on a security.
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22 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5
Zinsen ausschütten
distribute interest (as a dividend)


Explanation:
Seems to me it involves passing on the interest received.

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Note added at 25 mins (2005-05-18 06:44:44 GMT)
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Y has made a loan to X and receives interest.
Y funded its loan by borrowing from its \"Genussrechtsinhaber\".
When Y receives interest from X, this interest must be passed on to its certificate holders.
If Y is unable to pay out this interest as a dividend to the certificate holders, X has promised to do so instead.
(Sounds like some nifty wheeling and dealing between affiliated companies to me. I wonder which tax jurisdiction they are planning to diddle by shifting balance sheet losses and gains around between different organisations.)

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Note added at 5 hrs 48 mins (2005-05-18 12:07:02 GMT)
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Google tells us that 582 sources use the phrase \"distribute interest\", including Merril Lynch, the state of Arizona, KPMG Ireland, the Office of the Superintendent of Bankruptcy Canada, the British Sociological Association and the BBC.
Doesn\'t prove that the phrase is necessarily right in this case, of course, but it supports the plausibility of this option. And I find it difficult to interpret the textbite provided by Chris in any other way. If I had to go for one of the others, I\'d go for Kieran\'s version, but I read the German text slightly differently to him.

Victor Dewsbery
Germany
Local time: 16:14
Native speaker of: Native in EnglishEnglish
PRO pts in category: 7
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