Comedian Michael Blackson has detailed how he lost cash that were intended to benefit his school after he invested in Ghana’s Eurobonds.
In an interview with comedian Kwaku Sintim-Misa, Blackson explained how he planned to safeguard the school’s future using high-interest Ghanaian bonds.
“When I built the school, I tried to have a lifetime plan for the school. Because, let’s assume, five years from now, I don’t want to deliver jokes anymore. Then what will happen to the school?
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“How can I make sure this thing lasts forever? So what I did was… that the difference between Ghana and America is that Ghana will give you a better interest rate on your money.
“Because the Ghana bonds will give you a very high percentage. So I thought to myself, ‘I’m going to invest money in my country and use that interest to manage the school forever’,” he said.
Despite warnings from his American bankers about the perils of investing in a developing country, Blackson remained confident in Ghana’s stability.
However, the unexpected Eurobond haircut left him without the returns he had planned on.
“I remember when I was sending the money little by little, my bankers in America were like, ‘Mike, this is a third world country. Are you sure you want to send your money?’
“I told them not to talk crap about my country. Because I know for a fact the only way a connection could go bad was through a civil war.
“And Ghana can’t have a civil war. We are too tranquil. We’re too loving. We’re not going to hurt each other. Nothing will happen. So I said, there’s no way my money could go wrong. And guess what? I was mistaken.
“I did a Eurobonds thing and now… nothing,” he remarked.
Determined to keep the school functioning, Blackson said he has gone to organizations and is planning on organizing fundraising activities in the United States.
What happened to the EuroBonds
IN 2023, Ghana started a debt restructuring program, which included a reduction in the principal amount of its Eurobonds, intending to alleviate $20 billion in external debt.
The government sought a 30 to 40 percent decrease in debt and forgiveness of interest payments. Following the news, the value of Ghana’s sovereign dollar bonds plunged substantially.
This restructure coincided with IMF standards to aid Ghana with its Balance of Payments, costing $15 billion over three years.
Without adequate debt management, Ghana risked financial strain on its reserves and currency.
The Eurobond haircut was part of Ghana’s effort for economic relief, albeit facing potential creditor pushback.
