In a general sense, the question of what is a moratorium is answered as follows: the period of time for which any specific actions are suspended. This refers to the “freezing” of one event in anticipation of the next. Let's look at specific examples.
Business application
Suspension of operations may be undertaken if they become disadvantageous to one
from the parties. For example, if there is a possibility of a significant depreciation of the exchange rate, the bank may impose a moratorium on the loan. In this case, funds are not issued to the borrower. But this is not a complete failure. The bank simply suspends lending operations until the situation normalizes. As soon as the prospect of the money supply becomes clear, the borrower will again be able to contact the institution. In this case, the question of what is a moratorium, you can answer: the elimination of risks by the bank. At the same time, the institution takes care of both its interests and the borrower. Ultimately, when making an unreasonable decision, both can suffer. A firm may use a moratorium in its own financial affairs. For example, if revenues fall, then expenses for certain types of activity are “frozen”. Advertising is most often subject to a moratorium if this article seems unprofitable in the current circumstances.
In international relations
In the political and legal dialogue between states, a moratorium is used quite often. Suspension of decisions may become an incentive for turning events in a different direction.
Diplomats need a good understanding of what a moratorium is, so as not to make mistakes. Most often, states suspend their activities mutually. That is, all parties to the process declare a moratorium. As was the case when deciding to stop industrial exploration and development of Antarctica before deciding on the procedure for these actions. The moratorium can be one-sided: under certain conditions, the government of one country decides to suspend a project or agreement. Response from partners in this case is not required. For example, in 1985, the Soviet Union declared a moratorium on the use of medium-range missiles. In the same period, nuclear testing was unilaterally suspended. This was a political move: an offer to peace.
Death Penalty Moratorium
It is known that the issue of killing criminals is widely discussed in society. Some states recognize the death penalty as impossible. Others use it widely. IN
In this dialogue, some of the respondents try to prove to their opponents that the death penalty is savagery that is not acceptable for the modern world. States initiate a wide discussion of this issue by the public. Then a specific decision is made. The result may be: the abolition of the death penalty, which is sought by the opposing states, or its legitimization. Here, the whole system of power has a large number of difficulties associated mainly with the opinion of the people. Not every society is ready to forgive any criminal. In this case, the government recalls what a moratorium is. It is far from necessary to make a decision that does not find support in society. The moratorium provides an opportunity to get out of the situation. The death penalty is not abolished, but only suspended. The court cannot sentence the offender to her during the moratorium, which is introduced for a certain period.
Economic activity
A moratorium is a more diplomatic concept, although it is applied in many areas. This is an opportunity to get some time in order to rectify the situation before taking concrete actions. For example, a moratorium on the sale of land. In Ukraine, the law on the ability to carry out land sale and purchase transactions was adopted, but did not enter into force because the company was not ready for it. This is not a complete ban on the sale of land. Rather, it should be seen as the need to prepare the necessary legislative framework for such operations. Or in the Crimea, after entering the Russian Federation, a moratorium was declared. Privatization and land allotment is suspended until a master plan for the development of the peninsula is approved. Thus, a moratorium is a temporary suspension of the implementation of previously adopted decisions, but not a complete rejection of them. Government takes time out
to prepare the conditions for the implementation of the announced reforms.
