Maldives is set to welcome companies engaged in development projects within the country to invest in Treasury bonds. This move, aimed at diversifying the investor base for government securities, marks a departure from the traditional practice where Treasury bills (T-bills) and bonds were predominantly purchased by banks and large funds within Maldives.
The decision comes amidst efforts to revitalize the nation’s economy and attract more investment into key development sectors. According to the Principal Secretary to the President on Public Policy, Abdulla Nazim Ibrahim, the strategy is to prioritize companies that are actively investing in the country.
Until now, T-bills sold in Maldives have been largely confined to domestic financial institutions. In a recent development, the government listed T-bills on the local stock exchange, opening them up to individual investors. However, there has been no recorded bond purchase under this new arrangement so far.
The policy change is set against the backdrop of the Maldives’ pressing economic challenges. As of the third quarter of 2023, the nation’s external debt was reported to stand at MVR 51 billion, with domestic debt reaching MVR 68 billion. By broadening access to Treasury bonds, the government aims to not only address its immediate financial needs but also to drive long-term economic growth through sustained development projects.