Gov’t to Open Sale of MVR 1.6 Billion in Treasury Bills

The Ministry of Finance has announced the sale of MVR 1.6 billion in Treasury Bills (T-Bills), scheduled to commence on Tuesday, 2nd June. This offering includes four T-bills, each with varying repayment periods and interest rates, aimed at covering the government’s budget deficit.

Details of the Treasury Bills:

1. MVR 982 million – 28 days repayment period

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2. MVR 46 million – 98 days repayment period

3. MVR 169 million – 182 days repayment period

4. MVR 489 million – 364 days repayment period

The interest rates on these T-bills range from 3.50 per cent to 4.60 per cent, providing attractive investment opportunities for financial institutions and investors. T-bills are sold at a discount to their nominal value, and upon maturity, the state returns the full nominal value to the investors, offering a reliable return.

The sale of T-bills is a common strategy employed by governments to manage budget deficits by borrowing funds from the public and institutional investors. In the Maldives, banks, public companies, pension offices, and private companies are the primary investors in T-bills.

The Ministry of Finance encourages interested parties to participate in this sale, highlighting the benefits of investing in government debt securities. The funds raised through this T-bill issuance will support the government’s financial stability and contribute to the overall economic resilience of the Maldives.

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