President signs bill on flood bonds

04-06-2010

President Klaus has signed a government bill that will allow the state to issue flood bonds to the tune of 3 billion crowns as part of a financial rescue plan for victims of the spring floods that have caused widespread damage in the northeast of the country. The bonds should be bought by the European Investment Bank which gives the Czech government better terms than it would get if it offered them on the open market. As part of the deal the government also approved an increase in funding for flood-prevention by 1 billion to a total 11.5billion crowns.