bumping this again.
Does anyone have any in-depth details about this?
Their webpage sufficiently cover up all the real interesting details.
For example:
How do they make their money to pay out the winners.
They claim:
http://www.prizebonds.ie/index.asp
Last month 30752 Prize Bond investors received EUR 3,391,600 in Tax free cash prizes.
3m+ per month is not bad, but I wonder where does the money come from?
If i take the figure above about 1 billion sold bonds...
Do they take the approx 6,25 billion € and put them somewhere for interest? And If so, where and for how much and how save is it there?
Little math
6 Billion / 1 year EZB 1% = 60 million - [(12*3.4million) =40.8M] they would be good and would have a slight profit. If they get even more where is it and how save is it there? Rabodirect doest take that much and is not AAA anymore
or:
Do they buy other country's bonds and refinance with the interest they get from this? (So they maybe even own Greece bonds?) Then they probably wont have much space to maneuver on any Euro bailout negotiation.
or:
Wouldn't the government take such money first to pay off their own debts.
If I'm not too wrong were talking about 116 Billion € debts. So 6b are just peanuts and wont get them too far but will open again the question where does the money for the winners come from?
Is it maybe nothing else that a pyramid system where the "losers" not winning at all and/or not withdrawing their money on time, have to pay the bill at the end (in 2019)?
And now about who is running this show:
"The Prize Bond Company Ltd. is a joint venture operated between An Post and FEXCO.
The company was set up in 1989 to operate the scheme for the Minister for Finance. The scheme is now operated on behalf of the National Treasury Management Agency (NTMA) which manages the national debt on behalf of the Minister for Finance. In 2009 the company submitted a successful tender to operate the scheme for a further 10 years until September 2019.
An Post is responsible for the accounting, marketing and the conduct of the draw. The administration is carried out by FEXCO in Killorglin, Co.Kerry. "
So if a Ltd. is running it, how is anyone protected against them going into liquidation or walking away with the money ? Because a a Ltd. is well ... limited (in hope and in liability) and what will happen after 2019?
If anyone is interested into the annual report 2010.
http://www.prizebonds.ie/downloads/AnnualReport2010.pdf
I'm going to put these questions officially towards "The Prize Bond Company Ltd" and the "NTMA" and will see and put it here if they will respond to it.