The concept of "moratorium" came from the Latin word - moratorius, which meant "slowing down", "delaying." Today, this word in the broad sense means a temporary deferment of payment of payments on a debt obligation or a complete cessation of their validity.
General use of the word
The moratorium can be voluntary (bilateral), actual, unilateral and official. The general meaning of this word is as follows: a moratorium is a state where the borrower declares its insolvency in paying off the overdue debt or part thereof, and also when it ceases to pay the accrued interest on the loan.
Also, this concept can mean a reasonable refusal of the company from certain expenses. Then they say that the company imposed a moratorium on a certain type of expense.
In legislation relating to bankruptcy, a moratorium is designated as a legal obligation of an enterprise to stop loading credit funds.
The meaning of the word in dictionaries
The meaning of the word "moratorium" in different dictionaries is generally the same, but there are slight differences. So in the Ephraim dictionary, this word is given two meanings:
- The deferral of payments and financial obligations, which is set by government organizations for a specified period due to undeniable circumstances.
- Pause, postpone, temporarily stop a process or action.
In Ozhegov’s dictionary, this word is given the meaning of the delay granted by the government to fulfill certain obligations. This postponement has a fixed period or may be valid for certain circumstances.
In the Encyclopedic Dictionary, the word is considered in two aspects:
- In civil law: a moratorium is a delay in the performance of any obligations established for a certain period or until the end of force majeure events (for example, war, natural disasters).
- In international law: this is an agreement between states on the postponement or abstinence in certain actions for both a definite and an indefinite period.
According to the Financial Dictionary, a moratorium is a delay in fulfilling obligations also established by the government. This delay may apply to all or only certain obligations or debtors.
Conclusion
The concept of a “moratorium” is in most cases a delay in the performance of obligations assigned by government organizations for a specified period.
This word is widely used in various structures and has a narrow meaning.
