Coronavirus: United Kingdom, facing worst recession on record, sees GDP drop 20.4% in Q2

The UK has seen its economy, hit by the coronavirus crisis, suffer a "record" contraction of 20.4% in the second quarter, and is officially facing its worst recession on record, agency figures show National Statistics (ONS), published Wednesday 12 August. 
Economists consider that a country enters a technical recession when it accumulates two consecutive quarters of contraction in its economy. According to the ONS, most of the contraction, which began to be felt in March, occurred in April, an entire month of containment and almost total cessation of activity in the country, which saw production collapsed by 20%.

With a very early recovery in construction sites and manufacturing activity, gross domestic product (GDP) rebounded in May by 2.4% (revised figure), followed by an acceleration in June (+8.7 %) thanks in particular to the reopening of all shops. This is the biggest contraction in the UK economy since the ONS began these quarterly statistics in 1955, he said…

Mozambique: Total finalizes loan record for African project

Total has finalized the $ 15 billion loan to mine gas in Mozambique. Several development finance institutions are the creditors of this fundraising operation, which is a record for a project in sub-Saharan Africa.

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The French energy group Total has finalized the mobilization by debt of $ 15 billion for the commissioning in Mozambique of a gas field on which it operates. The fundraising on which the French financial group Societe Generale worked as an advisor is a record of resources mobilized via debt, to finance a project in sub-Saharan Africa.

Beyond its record amount, it is above all the fact that this funding has been secured in a context of uncertainty caused by Covid-19 and a drop in hydrocarbon prices that has left its mark on analysts the most. The US import-export bank (Exim Bank) has reportedly contributed $ 5 billion to the loan. The other major funding institution is the Japan Bank for International Cooperation, which has contributed $ 3 billion.

The African Development Bank (AfDB) is expected to contribute up to $ 400 million and commercial banks are also cited in the mobilization of additional resources for the project, the cost of which is estimated at $ 20 billion. The conditions imposed by creditors are not known to the general public.

It is not excluded that the interest rates on the credits granted are high. Mozambique is indeed facing an armed insurgency which increases the level of risk perceived by investors.