I lost money meant to support my school to Eurobond haircuts - Michael Blackson

Comedian Michael Blackson has narrated how he lost funds that were intended to support his school after he invested in Ghana's Eurobonds.

In an interview with comedian Kwaku Sintim-Misa, Blackson revealed how he planned to secure the school's future through high-interest Ghanaian bonds.

“When I built the school, I tried to have a lifetime plan for the school. Because, let's say, five years from now, I don't want to tell jokes anymore. Then what will happen to the school?

“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 higher interest rate on your money.

“Because the Ghana bonds will give you a very high percentage. So I said 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 risks 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 counted 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 bond could go bad was through a civil war.

“And Ghana can’t have a civil war. We are too peaceful. 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 wrong.

“I did a Eurobonds thing and now... nothing,” he said.

Determined to keep the school operational, Blackson said he has turned to nonprofits and is planning on organizing fundraising events in the United States.

What happened to the EuroBonds

In 2023, Ghana undertook a debt restructuring initiative, which included a reduction in the principal amount of its Eurobonds, aiming to alleviate $20 billion in external debt.

The government sought a 30 to 40 percent cut in principal and forgiveness of interest payments. Following the announcement, the value of Ghana's sovereign dollar bonds fell sharply.

This restructuring aligned with IMF conditions to assist Ghana with its Balance of Payments, requiring $15 billion over three years.

Without effective debt management, Ghana risked financial strain on its reserves and currency.

The Eurobond haircut was part of Ghana's strategy for economic relief, despite facing potential creditor resistance.

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