Final Word from Tuesday, August 13, 2002
Parts of the CR have been hit by floods in the past week, and initial estimates put the damage at more than Kč 10bn. This can't compare to the last big flood, which caused Kč 60bn in damage in 1997. Then, the government issued special flood bonds to cover the cleanup and recovery costs. Coincidentally, Česká spořitelna began redeeming the bonds on the government's behalf just as the new flooding was about to begin. Most of the individuals who bought the 1997 bonds did so as a sign of solidarity with their fellow citizens. The bonds later turned out to be a good investment, and the feeling of hard cash in hand has wiped out much of the old feeling of solidarity. However, if bondholders had an easy way to roll over their bonds or donate the coupons or principal to victims of the latest flooding, some of the feeling of solidarity could be revived.