Generally, an agreement between creditor and debtor that the claim arising from a loan or issue is not to be enforced until the financial situation of the obligor improves (the temporary suspension agreed by the lenders/investors of the reimbursement of principal [and sometimes even of the payment of interests] in relation to a loan/bond, until the borrower’s creditworthiness improves). – In particular, deferment of payment, extended payment period, extended credit period – in the old financial language also remise and remiss – in intergovernmental transactions. – A prohibition of sale and payment ordered by the supervisory authority with regard to an endangered bank. In September 2008, for example, the German Federal Financial Supervisory Authority (BaFin) imposed a moratorium on Lehman Brothers Bankhaus AG in Frankfurt am Main after several companies in the Group had filed for creditor protection in the USA or been placed under administration in the UK. Of course, shortly before the insolvency, the Lehman Brothers management had ordered the transfer of all cash holdings from the foreign branches to the head office in New York. – See atermoiement, Lehman bankruptcy, postday, default, insolvency.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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