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bonificación de intereses

English translation: interest rate subsidy

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Spanish term or phrase:bonificación de intereses
English translation:interest rate subsidy
Entered by: JH Trads
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07:53 Oct 10, 2001
Spanish to English translations [PRO]
Bus/Financial
Spanish term or phrase: bonificación de intereses
I am very confused by the following paragraph which appears in a document on company benefits from Spain.
Ayuda para la adquisición de vivienda habitual, consistente en la bonificación de 5 puntos de interés sobre un préstamo concertado con una entidad de crédito, siendo la cantidad máxima a bonificar 2 millones de pesetas durante un plazo máximo de 10 años, lo que equivale a 4.917 ptas/mes en bonificación, durante 10 años.
For one, what are puntos de interés? In English, interest and points are 2 different things. Second, the math doesn't work out in this para. since 4917 ptas/month for 10 years equals only 590,040 ptas, not 2 million. Any help would be greatly appreciated.
Jeanne Zang
United States
Local time: 22:56
interest rate subsidy
Explanation:
Hi Jeanne,
as you see below in the ref, this is the corresponding term

"... Prior to execution of the Interest Rate Subsidy Agreement (IRSA), the following
must occur: The municipality submits to DNR a Notice of Intent To Apply (ITA ...
www.dnr.state.wi.us/org/caer/cfa/EL/Section/small.html "

en tu ejemplo concreto, creo que hicieron el calculo de que el valor del flujo de las mensualidades de 4900pts equivale al cabo de 10 años a 2M, el motivo por el que no te cuadra la suma es que en este calculo financiero se considera que cada suma mensual va generando intereses (intereses compuestos en la jerga), de modo que por ejemplo la primera mensualidad de 4900 llega a equivaler como, 25000 en 10 años, la segunda 22500 (porque genera un mes menos de interes)..

se habla de puntos por lo siguiente: para pasar de 10% a 5% se dice que se baja en 5 puntos, con 1 pt= 1%. El motivo es no usar porcentajes en esta comparacion, ya que se volveria confuso: de 10% a 5% seria una bajada de 50% del tipo de interes, mejor decir que bajo 10-5=5 puntos , tambien llamados puntos base, y basis points en ingles

espero te ayude
Selected response from:

JH Trads
United States
Local time: 21:56
Grading comment
4 KudoZ points were awarded for this answer

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Summary of answers provided
4 +1interest rebate
Parrot
4interest rate subsidyJH Trads
4interest credit
Marian Greenfield


  

Answers


5 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
interest credit


Explanation:
Hi Jeanne,

I guess this is a housing subsidy program. <Punto> here just means percent, which is pretty common in Spanish.

For <bonificación de 5 puntos de interés > I think something like <a 5% interest credit> would work.

I didn't look at the math too closely, but I wonder if the difference has to do with compounding?

hth
msg



    20 years of experience as a financial translator
Marian Greenfield
Local time: 22:56
Native speaker of: Native in EnglishEnglish
PRO pts in pair: 14613
Login to enter a peer comment (or grade)

26 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
interest rate subsidy


Explanation:
Hi Jeanne,
as you see below in the ref, this is the corresponding term

"... Prior to execution of the Interest Rate Subsidy Agreement (IRSA), the following
must occur: The municipality submits to DNR a Notice of Intent To Apply (ITA ...
www.dnr.state.wi.us/org/caer/cfa/EL/Section/small.html "

en tu ejemplo concreto, creo que hicieron el calculo de que el valor del flujo de las mensualidades de 4900pts equivale al cabo de 10 años a 2M, el motivo por el que no te cuadra la suma es que en este calculo financiero se considera que cada suma mensual va generando intereses (intereses compuestos en la jerga), de modo que por ejemplo la primera mensualidad de 4900 llega a equivaler como, 25000 en 10 años, la segunda 22500 (porque genera un mes menos de interes)..

se habla de puntos por lo siguiente: para pasar de 10% a 5% se dice que se baja en 5 puntos, con 1 pt= 1%. El motivo es no usar porcentajes en esta comparacion, ya que se volveria confuso: de 10% a 5% seria una bajada de 50% del tipo de interes, mejor decir que bajo 10-5=5 puntos , tambien llamados puntos base, y basis points en ingles

espero te ayude


    Reference: http://www.cfnavarra.es/industria/areas/fomento/bonpres.htm
JH Trads
United States
Local time: 21:56
Native speaker of: Native in SpanishSpanish, Native in FrenchFrench
PRO pts in pair: 908
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1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
interest rebate


Explanation:
Interest depends on the price of money, which is measured in percentage points. As I gather, the rebate is a percentage practised on a maximum amount of 2 M, not on the entire cost of the housing unit. At any rate, it would be very strange to find a company willing to give you 2 M for a house, even if that's over 10 years. On the other hand, if you work for a bank or a financing entity, it could provide certain facilities to employees as a realistic tax shelter.

Parrot
Spain
Local time: 04:56
Native speaker of: Native in EnglishEnglish
PRO pts in pair: 7645

Peer comments on this answer (and responses from the answerer)
agree  José Cavalcante
1 hr
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