The dimensions of this problem are coming to the surface in a really big way. It turns out that in the past years, many financial advisors abused their confidential position towards clients, usually ordinary Czech households, who literally robbed them of their life savings. How else to call the fact that they imposed on them a product that they claimed was safe just for investing their own savings, without it actually being true.
They forced it on them
In fact, unfortunately, financial advisors and their affiliated companies profited from this, and they became significantly richer in this way. People now have nothing but eyes to cry over as it collapses one by one.
In recent years, it has become clear how problematic so-called dusty bonds are. And according to experts, this is just the beginning. A spectacular collapse is yet to come for a number of companies whose bonds are held by Czech households. And that it can really hurt, is shown by one of the latest cases, which is the Premiot Group.
It issued bonds worth hundreds of millions of crowns through several companies. In times of low interest rates, they promised a decent return, which many heard about. Unfortunately, they did not find out much about the possible risks, which is to a large extent the fault of jaded financial advisors, who only went for a high commission and often did not even hesitate to claim that it is a completely safe deposit of money, which in terms of risk is equal to a savings account.
This was understandably stupid, as bonds, especially for smaller and not very proven companies, are on the contrary very risky. This was fully demonstrated in the case of Premiot. Alliances with famous personalities didn’t help either, and last year the group began to fall apart.
It’s still going to be a ride
Bondholders first stopped getting coupon payments, and when they got nervous, they started demanding repayment of the principal. But then they found out that there was nothing they could do. The company made all kinds of promises and delayed, but in the end it became clear how much it let everyone down. Many of her projects were literally only on paper, although they were presented almost as finished.
Holders of these bonds will probably see nothing at all now. They often had a large part or even all of their savings in them. And apparently this will not be an isolated case. According to experts, tens of billions of bonds were issued for various dubious projects in the Czech Republic.
Read also: You receive an SMS and you are financially broke. The Czechs will react badly and lose all their savings, it’s fast. No one will give them back to them
It often takes the form of an “airplane”, which is also the reason why many of them stick around for so long. As long as new and new bonds are successfully sold, the interest on the old ones can be paid from them, and the car goes on like this, even though it should have gone bankrupt a long time ago. One day, however, she comes across and with her tens of thousands of burnt-out households.
Foto: Shutterstock
2023-12-10 15:00:00
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