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  • Writer's pictureNana yaw Dynamic

I regret investing in Ghana’s Eurobond – Michael Blackson


In an interview with Kwaku Sintim-Misa, the comedian Michael Blackson talked about his investment misfortune, describing how funds meant for his school were lost when he invested in Ghana's Eurobonds.


Blackson, who was known for his humor, had ambitious plans to invest in high-interest Ghanaian bonds to ensure the future of his school. He talked about his plans to keep the school going and talked about when he might stop doing comedy. I tried to develop a long-term plan for the school when I built it. Because, let's say, in five years' time, I no longer want to tell jokes.


Then, at that point, what will befall the school? "How can I guarantee that this item will last forever?" So what I did was… that the contrast among Ghana and America is that Ghana will give you a higher financing cost on your cash. "Because Ghana bonds will provide you with a very high percentage," Therefore, he stated, "I told myself, "I'm going to invest money in my country and use that interest to manage the school forever."


Notwithstanding admonitions from his American brokers about the dangers of putting resources into an emerging nation, Blackson stayed sure about Ghana's security. He dismissed worries about possible misfortunes and pushed ahead with the speculation. My American bankers said to me, "Mike, this is a third world country," as I sent the money in small amounts.


Are you positive that you want to send money?' I instructed them to refrain from disparaging my nation. Since I know beyond all doubt the main way a bond could turn sour was through a nationwide conflict. And there can't be a civil war in Ghana. We are excessively tranquil. We are too tender. We will not harm one another. There will be no change.


I stated that there was no way my money could be misplaced. Furthermore, prepare to have your mind blown. I was unwise. He stated, "I did a Eurobonds thing and now... nothing." Sadly, the Eurobond hair style walloped Blackson, leaving him without the normal returns. He is determined to keep the school running despite this setback, utilizing nonprofit organizations and organizing fundraising events in the United States as part of his efforts.


What took place with the EuroBonds?


In 2023, Ghana embraced an obligation rebuilding drive, which remembered a decrease for the chief measure of its Eurobonds, meaning to reduce $20 billion in outer obligation. The government wanted to forgive interest payments and reduce principal by 30 to 40 percent. The value of Ghana's sovereign dollar bonds plummeted sharply following the announcement.


In order to assist Ghana with its Balance of Payments, which would require $15 billion over three years, this restructuring complied with IMF requirements. Ghana ran the risk of straining its reserves and currency financially if it did not implement effective debt management.


The Eurobond hair style was important for Ghana's procedure for financial help, notwithstanding confronting potential loan boss obstruction.

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