Lockdown 2.0: Update On Jersey Cash Box Structures

Since our last update on cash box structures at the start of April 2020 (see Jersey cash box structures: a fast route to funding) the UK economy has endured a turbulent Q2 and Q3. According to the Institute for Fiscal Studies, GDP fell by a record 19.8% quarter-on-quarter (QQ) in the second quarter of 2020, with output expected to rebound by 17.5% QQ in Q3. Notwithstanding the rebound in Q3, significant headwinds are expected for the economy in Q4 as large parts of the UK have returned to some version of lockdown. The Bank of England's fresh GBP150billion stimulus package for the UK economy amid the second coronavirus wave, together with the extension of the Coronavirus Job Retention Scheme until March 2021, will serve to alleviate some of the pain, at least in the short term, for UK businesses. In this update we explore how UK plcs have responded to the liquidity challenges presented by the coronavirus and specifically the role of cash boxes in response to