In general, when asked what a moratorium is, they respond like this: the time interval for which any specific actions are suspended. It means "freezing" one event in anticipation of the next one. Let's look at specific examples.
Application in business
Suspension of operations can be undertaken if they become unprofitable for one From the parties. For example, if there is a possibility of a significant depreciation of the currency, the bank may impose a moratorium on the loan. In this case, the borrower does not receive funds. But this is not a complete failure. Simply, the bank suspends credit operations until the situation normalizes. As soon as the outlook for the money supply becomes clear, the borrower will again be able to apply to the institution. In this case, the question of what a moratorium is, you can answer: the elimination of risks by the bank. At the same time, the institution takes care of both its own interests and the borrower. Ultimately, when making an unreasonable decision, both can suffer. The firm can use a moratorium in its own financial affairs. For example, if revenues fall, then the costs for certain activities are "frozen". Advertising is most often subject to a moratorium, if this article seems unprofitable in the circumstances.
In international relations
In the political and legal dialogue between states, the moratorium is used quite often. Suspending decisions can be a stimulus for the turn of events in a different direction. Diplomats need to understand well 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 it was when deciding to stop the industrial exploration and development of the Antarctic before adopting the procedure for carrying out these actions. The moratorium can be one-sided: in certain circumstances, the government of one country decides to suspend the operation of a project or agreement. The answer 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. During the same period, nuclear tests were unilaterally suspended. The move was political: a proposal for peace.
Moratorium on the death penalty
It is known that the issue of the murder of criminals is widely discussed in society. Some states recognize the death penalty as impossible. Others use it widely. AT In this dialogue, some of the respondents try to prove to their opponents that the death penalty is savagery that is not acceptable to the modern world. States initiate a broad discussion of this issue by the public. Then a concrete decision is made. The result may be: the refusal of the death penalty, which the opponents of the state are seeking, or its legitimization. Here, the whole system of power has a large number of difficulties, connected mainly with the opinion of the people. Not every society is ready to forgive any criminal. In this case, the government remembers what a moratorium is. It is far from necessary to make a decision that will not find support in society. The moratorium makes it possible to get out of the situation. The death penalty is not abolished, but only suspended. The court can not sentence a criminal to it during the moratorium, which is imposed for a certain period.
Economic activity
The moratorium is a more diplomatic concept, although it is applied in many areas. This is an opportunity to get some time to correct 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 transactions for the sale and purchase of plots has been adopted, but has not come into effect because the society is 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 basis for such operations. Or in the Crimea after entering the Russian Federation, a moratorium was declared. Privatization and allocation of land is suspended until the general plan for the development of the peninsula is approved. Thus, a moratorium is a temporary suspension of 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.
In the environment
Often a moratorium is offered by enterprises and entire countries with a view to conserving natural resources. So, the Europeans in 2013 proposed to suspend the permission to catch some fish species. According to experts, their industrial production threatens complete destruction of marine life. Such issues are regularly raised and discussed in the world community. The goal is not only to protect the environment, but also to involve the public in these issues.