CEO of Dalex Finance, Joe Jackson has provided a sharp critique of Akufo-Addo government’s handling of its debt crisis, shedding light on the country’s negotiations with Eurobond holders.
His remarks, delivered in a heated discussion on the KeyPoints with Alfred Ocansey emphasized the reality of Ghana’s economic situation and the impact of government decisions on bondholders and citizens alike.
Jackson explained that Ghana’s government unilaterally suspended Eurobond payments because it was simply unable to pay its debts.
“First of all, we unilaterally suspended all payments. When we suspended payments, it was because we could not pay. We were so broke, we raised up our hands and said we could not pay. And we went to the IMF for a bailout,” he said on March 1.
This, he argued, amounted to a default, despite government officials attempting to frame it differently.
According to Jackson, negotiations with Eurobond holders spanned from 2022 to 2024, with investors reluctantly accepting Ghana’s inability to make payments.
He highlighted that in May 2024, Eurobond holders agreed to a 37% haircut on the $13.1 billion debt, amounting to a $4.7 billion concession.
However, Jackson dismissed the notion that bondholders willingly made these concessions out of goodwill.
“It’s not as if the bondholders came to us and said, we love you so much, we donate money to you. A gun was held to their heads,” he stated.
Jackson criticized the government for its approach to domestic financing, describing it as the largest forced transfer of wealth from private citizens to the state.
“If you ask your domestic citizens to give up their money, it was the single biggest transfer of funds from the private sector to the government sector we’ve ever known in this country, or maybe even the whole of Africa.”
He made it clear that such drastic measures only reaffirm Ghana’s financial struggles.
“If you take 55 billion in deficit financing and say that was required to keep us alive, are you not broke? You are broke.”
Jackson’s remarks highlight the severity of Ghana’s economic challenges and the need for responsible financial management. His assessment suggests that while government negotiations have provided temporary relief, the root causes of the crisis remain unaddressed.
