Opinion | Pandemic pandemonium & policies - measured by moratorium and Moody’s

Moratorium: A temporary stopping of an activity, especially by official agreement Interest moratorium: Temporary pause of interest payments due Pandemonium: A state of great noise and confusion Policies: A plan of action agreed or chosen by a government Pandemic: A disease that spreads over a whole country or the whole world The topic of interest calculation and its levy, which is a commercial function and the very basis of existence of lending entities, has evoked much interest in the past many months. Thus, interest moratorium does not mean the activity, which is “interest payable on the outstanding principal amount”, will be waived off but that it would be deferred. The bank then uses the monies to give loans at higher interest rate and the differential is called “gross spreads”. The sovereign also has a larger role of balancing the multiple hats it wears and to constantly prioritise over various conflicts of interest that these create: * primarily being a political figure * regulator of policies that govern the economic-existence, economic-destiny & commercial-viability of the nation, * “Boss” of all regulators * Biggest borrower in domestic debt markets * industry-player-competitor Because the sovereign owns stake in banks, it is a stakeholder in the overall system and any decision that could have an implication on minority shareholders must be factored in.